The digital asset sector took another step toward integration with time-honored finance this week when Kraken provided direct access to the U.S. Federal Reserve’s payment rails – a milestone that could change the way crypto companies move dollars. Direct access to the Fed’s payments infrastructure could give cryptocurrency exchanges greater control over dollar flows while reducing reliance on banking partners, a long-standing challenge for the industry.
It also signals that crypto infrastructure continues to mature and integrate with the time-honored banking system despite broader industry issues and a multi-month market correction – one of the key topics of this week’s Crypto Biz newsletter.
Meanwhile, Bitcoin (BTC) mining company MARA Holdings has dismissed speculation that it plans to abandon its BTC reserves, explaining that recent regulatory filings simply make its finances more elastic. Bitcoin rewards company Fold has strengthened its balance sheet by eliminating $66 million in convertible debt, while analysts say a proposed tokenization framework on the New York Stock Exchange could open the door to greater institutional participation.
Kraken is the first to gain access to Fed payments in the cryptocurrency industry
Kraken’s banking division has secured a limited-use master account at the Federal Reserve Bank of Kansas City, giving it direct access to the U.S. central bank’s payments infrastructure, a first for a cryptocurrency company.
In Wednesday’s announcement, Kraken Financial confirmed that it can now exploit the Fed’s Fedwire system, a real-time gross settlement network that allows financial institutions to send and receive payments through the Fed. Access allows Kraken to process US dollar payments directly with the central bank, rather than relying on intermediary banks.
The authorization is initially granted for a period of one year, with restrictions adapted to Kraken’s business model and risk profile.
“Through the Federal Reserve Master Account, we can operate not as a peripheral participant in the U.S. banking system, but as a directly connected financial institution,” said Arjun Sethi, co-CEO of Kraken.
MARA Explains Bitcoin Treasury Strategy After Sell-Off Concerns
Bitcoin mining company MARA Holdings said recent disclosures regarding the sale of Bitcoin from its balance sheet were intended to signal flexibility rather than an imminent liquidation of its holdings.
Vice President Robert Samuels said the company’s latest Form 10-K filed with the U.S. Securities and Exchange Commission explains that MARA has expanded its finance strategy to allow for potential sales of Bitcoin if market conditions require it. The policy also allows the company to purchase additional BTC from time to time.
Some members of the crypto community interpreted the report as authorizing the sale of more than 53,000 BTC of the MARA vault, which Samuels called an interpretation that was “factually incorrect.”
Bitcoin-focused fold eliminates $66 million in convertible debt
Bitcoin financial services company Fold said it has eliminated $66.3 million in convertible debt, removing a potential source of balance sheet pressure and shareholder dilution ahead of the launch of its novel Bitcoin rewards credit card.
In a recent disclosure, Fold said it had retired two outstanding convertible notes – debt instruments that can be converted into shares – thereby reducing the risk of issuing additional shares in the future. The move also released 521 Bitcoins that had previously been pledged as security for the debt.
A stronger balance sheet could support the launch 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 Stock Exchange in February 2025 through a SPAC merger with FTAC Emerald Acquisition, becoming one of the first publicly traded Bitcoin-focused financial services companies.
TD Securities says the push for tokenization on the NYSE could attract institutions
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 New York Stock Exchange recently proposed tokenizing stocks through an alternative trading system that would enable 24/7 trading and near-instant settlement of tokenized stocks and exchange-traded funds, operating under existing market rules.
Noch said the model is reminiscent of a “2.0” evolution of market infrastructure: depository and settlement services will remain with the Depository Trust & Clearing Corporation (DTCC), while trading will continue to operate under National Best Bid and Offer (NBBO) requirements.
Crypto Biz is your weekly pulse of the blockchain and cryptocurrency industry, delivered straight to your inbox every Thursday.
