TechFlow News, March 6: According to The Block, TD Cowen stated that, following Kraken’s approval for a Federal Reserve master account, more cryptocurrency firms are expected to receive similar approvals this year.
Jaret Seiberg, Managing Director of the Washington Research Group at investment bank TD Cowen, noted in a report released Thursday that although banks are expected to voice opposition—and potentially file lawsuits—they lack the ability to block such approvals. Kraken Financial, Kraken’s banking arm, became on Wednesday the first cryptocurrency firm approved to access the Federal Reserve’s core payment system, receiving a one-year “limited-purpose” account.
Seiberg pointed out that Kraken qualified because it operates as a Wyoming-chartered special-purpose depository institution, placing it in the “Tier 3” category as defined by regulators. Although the Bank Policy Institute has expressed “deep concern,” TD Cowen expects cryptocurrency entities to ultimately obtain master accounts.
