Breaking news!! Kraken has integrated with the Fed's payment system. Here's a detailed analysis:

1. According to WSJ reports, it is likely a simplified or restricted version of the Fed's main account access in the U.S. This payment system primarily refers to the Fedwire system, more information can be found on the Fed Financial Services website:
2. This payment system handles approximately $4 trillion daily. Large interbank transfers are mainly processed through Fedwire.
3. Kraken's licensed banking subsidiary has obtained main account eligibility, but in theory, it does not enjoy some of the rights of traditional banks, such as reserve interest rates or access to discount window policies.
4. For Kraken, the most direct benefit is cost reduction. Previously, transfers and deposits/withdrawals had to rely on intermediary banks, but now those costs are eliminated, and transactions are faster. In other words, this somewhat weakens the intermediary role of traditional banks in payments. To some extent, it signals Fed support for crypto.
5. This should be viewed in conjunction with recent OCC approval for trust banks, which is gradually allowing the crypto industry to enter the regulated financial system.
6. The biggest beneficiaries are stablecoins. In theory, issuers could also perform similar operations, significantly reducing settlement costs and counterparty risks. Of course, it also greatly facilitates institutional funds to directly enter the crypto ecosystem, as the friction between fiat and crypto is reduced. More fundamentally, crypto payments will gradually challenge traditional banking payment systems.