The digital asset sector took a step closer to integrating with traditional finance this week when Kraken gained direct access to the US Federal Reserve’s payment lanes, a milestone that could reshape the way cryptocurrency companies move dollars. Direct access to the Federal Reserve’s payments infrastructure could give the cryptocurrency exchange greater control over dollar flows while reducing reliance on banking partners, a long-standing challenge for the industry.
It also indicates that crypto infrastructure continues to mature and integrate with the traditional banking system despite broader industry headwinds and a months-long market correction, one of the key themes of this week’s Crypto Biz newsletter.
Meanwhile, Bitcoin (BTC) miner MARA Holdings rejected speculation that it plans to dump its BTC reserves, clarifying that recent regulatory filings simply expand its treasury flexibility. Bitcoin rewards company Fold bolstered 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 Gains Fed Payments Access First in Crypto Industry
Kraken’s banking arm has secured a limited-purpose master account at the Federal Reserve Bank of Kansas City, giving it direct access to the US central bank’s payments infrastructure, a first for a crypto-native company.
In an announcement Wednesday, Kraken Financial confirmed that it can now use the Federal Reserve’s Fedwire system, a real-time gross settlement network that allows financial institutions to send and receive payments with the Federal Reserve. The access allows Kraken to process US dollar payments directly with the central bank instead of relying on intermediary banks.
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 American banking system, but as a directly connected financial institution,” said Arjun Sethi, co-CEO of Kraken.
MARA clarifies Bitcoin treasury strategy after sell-off concerns
Bitcoin mining company MARA Holdings said recent revelations about the sale of Bitcoin from its balance sheet were intended to indicate flexibility, not an imminent liquidation of its holdings.
Vice Chairman Robert Samuels said the company’s latest Form 10-K filing with the U.S. Securities and Exchange Commission clarifies that MARA expanded its treasury strategy to allow for 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 presentation as authorization to sell the more than 53,000 BTC of MARA’s treasury, an interpretation that Samuels called “factually incorrect.”
Bitcoin-focused Fold eliminates $66 million in convertible debt
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 the launch of 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 released 521 Bitcoin that had previously been pledged as collateral for the debt.
The 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 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 NYSE Tokenization Push 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 allow 24-hour trading and near-instant settlement of tokenized stocks and exchange-traded funds while operating under existing market rules.
Nor did he say that the model resembles a “2.0” evolution of market infrastructure: custody and settlement will remain in the hands of the Depository Trust & Clearing Corporation (DTCC), while trading will continue to follow National Best Buy and Offer (NBBO) requirements.
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