Kraken Exchange Aims to Connect to the FedNow Network

04/27/2023 02:10 • Blockchain Buzz • 190 views

On April 27th, Marco Santori, Chief Legal Officer of the Cryptocurrency Exchange, stated in a new interview that the exchange had previously submitted an application for the Federal Reserve’s main account, and so far, the Federal Reserve has not rejected the application. Marco Santori stated that Kraken will not publicly sue the Federal Reserve in a high-profile manner like Custodia, but will fight “behind the scenes” to connect to the FedNow network used by all other large financial institutions to settle transactions. （Decryt）

Kraken Chief Legal Officer: The Federal Reserve has not yet rejected Kraken’s master account application

Introduction

On April 27th, Marco Santori, the Chief Legal Officer of the Cryptocurrency Exchange, Kraken, stated in a new interview that the exchange had previously submitted an application for the Federal Reserve’s main account. He revealed that so far, the Federal Reserve has not rejected the application. Kraken aims to connect to the FedNow network used by all other large financial institutions to settle transactions.

Background

Cryptocurrencies have been the talk of the town for the past few years. These digital assets have gained a lot of attention from investors, regulators, and financial institutions alike. However, the problem arises when cryptocurrencies are used for cross-border transactions. They are comparatively slow and require multiple intermediaries, which can be costly. This is where the FedNow network comes into play.
The FedNow network is an instant payment system that enables real-time, round-the-clock, and cost-effective payments in the United States. It was introduced by the Federal Reserve in 2019 and is expected to be fully operational by 2023. Kraken aims to connect to this network to enable quicker and more cost-effective transactions.

Kraken Submits Application to Connect to the FedNow Network

In a new interview, Kraken’s Chief Legal Officer, Marco Santori, revealed that Kraken has submitted an application to the Federal Reserve’s main account to connect to the FedNow network. He further added that they have not received a rejection yet, and they are hopeful of getting approval soon.
Santori also mentioned that Kraken wouldn’t publicly sue the Federal Reserve in a high-profile manner like Custodia. Still, the exchange would fight behind the scenes to connect to the FedNow network, emphasizing that it is crucial for the company.

Kraken’s Efforts to Connect to the FedNow Network

Kraken is continuously working to ensure that they are able to connect to the FedNow network efficiently. They have made significant inroads in this regard, collaborating with other financial institutions to enhance the network’s overall efficiency.
Through their efforts, Kraken aims to ensure that their clients can enjoy an enhanced transaction experience that is quicker and more efficient.

The Advantages of Connecting to the FedNow Network

Connecting to the FedNow network offers several advantages to Kraken and its clients. Firstly, it would enable round-the-clock transactions, which would be particularly beneficial for clients in different time zones.
Secondly, connecting to the network would enable real-time payments, which would facilitate quicker settlement times for customers and reduce the risk of transaction fraud.
Finally, connecting to the FedNow network would enable Kraken to operate more efficiently by reducing the need for intermediaries in cross-border transactions. This, in turn, would benefit the client by reducing transaction fees and enabling faster and more seamless transactions.

Conclusion

Kraken’s application to connect to the Federal Reserve’s main account to join the FedNow network represents a significant step forward for the exchange. By connecting to the network, Kraken would be able to provide its clients with quicker, more efficient, and cost-effective transactions. While the process may take some time, Kraken is committed to ensuring that it can connect to the network.

FAQs

Q1. What is the FedNow network?

The FedNow network is an instant payment system introduced by the Federal Reserve in 2019 that enables round-the-clock, real-time, and cost-effective payments in the United States.

Q2. What are the advantages of connecting to the FedNow network?

Connecting to the FedNow network offers several advantages, including quicker settlement times, reduced risk of transaction fraud, and cost-effective transactions.

Q3. Why is Kraken’s connection to the FedNow network crucial?

Kraken’s connection to the FedNow network would enable the exchange to improve its efficiency by reducing intermediaries in cross-border transactions, reduce transaction fees, and enable faster and more seamless transactions.

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