Crypto Biz: Kraken plugs into the Fed

Kraken secures Fed payment access, MARA clarifies its Bitcoin treasury plans, Fold cuts $66M in debt, and analysts say NYSE tokenization could attract institutions.

The digital asset sector took another step toward integration with traditional finance this week when Kraken secured direct access to the US Federal Reserve’s payment rails — a milestone that could reshape how crypto companies move dollars. Direct access to the Fed’s payment infrastructure could give the crypto exchange greater control over dollar flows while reducing reliance on banking partners, a longstanding challenge for the industry.

It also signals that crypto infrastructure is continuing to mature and integrate with the traditional banking system despite broader industry headwinds and a months-long market correction — one of the key themes in this week’s Crypto Biz newsletter.

Meanwhile, Bitcoin (BTC) miner MARA Holdings pushed back on speculation that it plans to dump its BTC reserves, clarifying that recent regulatory filings simply expand its treasury flexibility. Bitcoin rewards company Fold strengthened its balance sheet by eliminating $66 million in convertible debt, while analysts say a proposed New York Stock Exchange tokenization framework could open the door to greater institutional participation.

Kraken’s banking arm has secured a limited-purpose master account with the Kansas City Federal Reserve Bank, granting it direct access to the US central bank’s payment infrastructure, a first for a crypto-native company.

In a Wednesday announcement, Kraken Financial confirmed it can now use the Fed’s Fedwire system, a real-time gross settlement network that allows financial institutions to send and receive payments with the Fed. The access allows Kraken to process US dollar payments directly with the central bank instead of relying on intermediary banks.

The approval is initially granted for one year, with restrictions tailored to Kraken’s business model and risk profile.

“With a Federal Reserve master account, we can operate not as a peripheral participant in the US banking system, but as a directly connected financial institution,” said Arjun Sethi, Kraken’s co-CEO.

Bitcoin mining company MARA Holdings said recent disclosures about selling Bitcoin from its balance sheet were intended to signal flexibility — not an imminent liquidation of its holdings.

Vice president Robert Samuels said the company’s latest Form 10-K filing with the US Securities and Exchange Commission clarifies that MARA expanded its treasury strategy to allow potential Bitcoin sales if market conditions warrant. The policy also allows the company to purchase additional BTC periodically.

Some members of the crypto community interpreted the filing as authorization to sell MARA’s more than 53,000 BTC treasury, an interpretation Samuels called “factually incorrect.”

Bitcoin financial services company Fold said it eliminated $66.3 million in convertible debt, removing a potential source of balance-sheet pressure and shareholder dilution ahead of launching a new Bitcoin-rewards credit card.

In a recent disclosure, Fold said it retired two outstanding convertible notes — debt instruments that can be converted into equity — thereby reducing the risk of issuing additional shares in the future. The move also freed 521 Bitcoin that had previously been pledged as collateral for the debt.

The stronger balance sheet could support the rollout of Fold’s planned Bitcoin rewards credit card, which will allow users to earn BTC on everyday purchases through the Visa network. 

Fold went public on the Nasdaq in February 2025 through a SPAC merger with FTAC Emerald Acquisition, becoming one of the first publicly traded Bitcoin-focused financial services companies.

Tokenization efforts tied to the New York Stock Exchange could accelerate institutional adoption of blockchain-based markets, according to TD Securities strategist Reid Noch.

The NYSE recently proposed tokenizing equities through an alternative trading system that would enable 24-hour trading and near-instant settlement for tokenized stocks and exchange-traded funds while operating under existing market rules.

Noch said the model resembles a “2.0” evolution of market infrastructure: Custody and settlement will remain with the Depository Trust & Clearing Corporation (DTCC), while trading will continue to follow National Best Bid and Offer (NBBO) requirements.

Crypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

Source: CoinTelegraph