Fed Considers New Account Model for Fintech and Stablecoin Access

At the Federal Reserve’s Payments Innovation Conference on Tuesday, Governor Chris Waller announced plans for a new category of limited-access “skinny master accounts,” according to former Fox Business journalist Eleanor Terrett.

The framework would allow all legally eligible institutions, including fintech firms, stablecoin issuers, and crypto custodians, to connect directly to the Fed’s payment rails without relying on intermediary banks.

Waller explained that these accounts would not grant access to every service of a traditional master account, such as borrowing privileges or emergency lending. 

However, they would provide direct settlement capabilities, a privilege long reserved for licensed banks. “Every legally eligible entity could get one,” Waller said, emphasizing that eligibility rules under existing law would remain unchanged.

A potential breakthrough for digital asset institutions

The proposal could mark a turning point for firms that have faced years of regulatory friction, including Custodia Bank and Kraken Financial, both of which have sought direct Fed access.

Custodia even filed a lawsuit against the central bank over its prolonged application process. Other companies like Ripple and Anchorage Digital, which submitted applications earlier this year, could also benefit if the new model is approved.

The proposal quickly caught the crypto sector’s eye. By giving nontraditional firms direct Fed access, it could fast-track stablecoins and tokenized settlements into the U.S. financial system, a move blurring the line between banks and blockchains.

Also read: US Fed to Discuss Bitcoin, Crypto at Payments Conference

Follow The Crypto Times on Google News to Stay Updated!