Fed Rails and Nasdaq Tokens

Two watershed milestones were recently achieved by Kraken, a Fabrica Ventures portfolio company:

1. Kraken becomes the first crypto company to secure Fed master account access

Kraken has obtained a Fed “master account,” granting its banking arm direct access to the Fed’s core payment infrastructure — placing it on the same rails as traditional financial institutions.

This includes direct connectivity to Fedwire, a key interbank network that processes trillions of dollars in daily transfers. Historically, Kraken relied on partner banks to move US dollars. With this approval, the firm can now settle transactions natively, significantly improving speed, control, and reliability — particularly for institutional clients and large traders.

2. Nasdaq partners with Kraken to advance tokenized equities

Nasdaq is partnering with Kraken to distribute tokenized US equities to global users, with a launch targeted for the first half of next year, subject to regulatory approval.

Under the proposed model, tokenized shares will carry the same CUSIP identifiers as traditional securities and settle through existing market infrastructure, ensuring full interchangeability. Token holders will retain the same economic and governance rights as shareholders, including voting and dividends.

This approach materially differs from most existing “stock tokens,” which are typically synthetic instruments or claims on special-purpose vehicles and do not require issuer approval.

While the initial focus is on public equities, the underlying architecture — 24/7 settlement and blockchain-based ownership records — lays the groundwork for the eventual tokenization of private securities. Each step toward regulated, round-the-clock trading in public markets meaningfully narrows the structural gap between public and private market liquidity.

Conclusion

Kraken has been methodically positioning itself for a public listing. Through a series of targeted acquisitions — spanning Magna (token management), Backed Finance (tokenized equities via xStocks, with over $25B in transaction volume), Small Exchange (US-licensed derivatives), and NinjaTrader (US futures platform) — the company has expanded both its product breadth and its institutional relevance.

As regulatory clarity around digital assets continues to improve, these preparatory moves suggest that Kraken may be approaching the final stages of its IPO readiness.