Fed Proposes 60-Day Comment Period for Skinny Master Accounts

The U.S. Federal Reserve has formally proposed a new type of payment account that could grant certain financial technology and cryptocurrency firms limited direct access to its core payment systems. The proposal, announced on Wednesday, is now open for a 60-day public comment period.

This new account structure, often referred to as a "skinny master account," is designed for institutions that are legally eligible but not federally insured. It would allow them to clear and settle payments through Federal Reserve services like Fedwire and FedNow, potentially increasing transaction speed and reducing costs. However, the accounts would come with significant restrictions. Holders would not have access to intraday credit, the Fed's discount window for emergency lending, or interest on balances. They would also be subject to automated controls to prevent overdrafts and limits on overnight balances.

The central bank stated the proposal aims to support innovation while mitigating risks to the financial system. It follows an initial request for information issued in December 2025, with the new version described as substantially similar but with adjustments, including an increase to the...