Kraken Secures Fed Master Account, Challenging Bullish’s Debut as Third US Exchange
Kraken secured the first Federal Reserve master account for a U.S. cryptocurrency exchange, gaining direct access to Fedwire while foregoing interest on reserves and emergency lending. Its $20 billion pre-IPO valuation and strengthened settlement infrastructure intensify competition for Bullish’s planned listing as the third Wall Street exchange.
1. Kraken Secures Federal Reserve Master Account
Kraken became the first U.S. cryptocurrency exchange to obtain a Federal Reserve master account, enabling direct settlement on Fedwire. The approval grants Kraken core payment infrastructure access but includes riders barring interest on reserves and emergency lending facility use.
2. Implications for Bullish’s Upcoming IPO
Kraken set its pre-IPO valuation at $20 billion following an $800 million funding round, positioning itself as a major Wall Street candidate. Bullish aims to list as the third U.S. crypto exchange, facing heightened competition from Kraken’s enhanced settlement capabilities.
3. U.S. Crypto Exchange Competitive Landscape
Kraken handles $1.99 billion in 24-hour trading volume, second only to Coinbase’s $3.35 billion, and supports over 500 cryptocurrencies. Bullish will enter a market dominated by these two established exchanges, requiring clear differentiation to capture market share.