The Federal Reserve has unveiled a proposal for a new limited-access account model—described as “skinny master accounts” or “payment accounts”—that could reshape how cryptocurrency and fintech firms connect to U.S. payment infrastructure. This proposal is positioned as a way to offer direct access to Fed payment rails while keeping tighter controls than a traditional master account.
How “payment accounts” would work and what they restrict
The proposed accounts would provide narrow access to Federal Reserve payment systems such as FedWire and FedNow without extending full master-account privileges. The defining feature of the model is limited payment-system connectivity paired with explicit constraints intended to contain monetary and systemic risk. The text frames the approach as a structural compromise: enable settlement access, but limit the broader benefits that come with full central bank relationships.
The account design includes several concrete limitations: no interest paid on balances, no access to Federal Reserve credit facilities, strict balance caps, and a ban on providing correspondent services or settling for other institutions. The proposed restrictions are presented as guardrails to prevent these accounts from competing with commercial bank deposits or functioning like full-service banking access. The text also indicates a streamlined review process relative to full master-account applications, reinforcing the idea that access would be narrower but potentially more operationally achievable.
For eligible crypto and fintech firms, direct access to Fed payment rails would change the mechanics of settlement and treasury operations by reducing reliance on intermediary commercial banks. The proposal implies faster settlement, lower transaction costs, and reduced counterparty dependence by moving payment connectivity closer to the central-bank layer. In practical terms, the shift described is from indirect participation via banking partners to a model where certain firms can connect more directly to core payment systems.
From a compliance and risk lens, the proposal is framed as focusing responsibilities on payment settlement rather than broader banking services, while still emphasizing financial-crime and systemic safeguards. The text links the limitations to managing money-laundering, terrorist-financing, and broader systemic risks while still allowing payments innovation. Governor Christopher Waller is cited as highlighting the policy rationale and describing digital assets as “woven into the fabric of the financial system,” which supports the narrative that the Fed is adapting to structural market realities.
The proposal is presented as an incremental pathway with a public comment period underway, and some observers cited in the text suggest implementation could potentially occur as early as Q4 2026. The timeline remains framed as conditional, with the comment process and policy finalization implied as the next gating steps.
