TD Cowen: More crypto companies expected to receive Fed master accounts, banks powerless to stop it.

PANews reported on March 6th, citing The Block, that TD Cowen stated that following Kraken's approval for a Federal Reserve master account, more crypto companies are expected to receive similar access this year. Kraken Financial became the first crypto company to be granted access to the Federal Reserve's core payment system, with the Kansas City Fed approving a one-year "limited-use" account with undisclosed restrictions on its business model and risk profile. Kraken qualified for the application due to holding a Wyoming special purpose depository license, classifying it as a "Tier 3" entity as defined by regulators. TD Cowen noted that while banking organizations have objected and may file lawsuits, banks are powerless to block such approvals. The Fed is expected to restrict Kraken's credit services, and it may be unable to receive reserve interest. Other crypto companies with slower application progress may need to wait for the Fed to finalize its streamlined review framework.