Fed proposes limited-access master accounts for fintech and crypto

Federal Reserve Governor Christopher Waller on Tuesday unveiled a proposal to give legally eligible fintech firms, stablecoin issuers and crypto-related companies limited direct access to Federal Reserve payment infrastructure. Announced at the Fed's inaugural Payments Innovation Conference in Washington, D.C., the proposal would create a new category of payment accounts, sometimes described as "skinny" or limited-access master accounts, to connect eligible institutions to core payment rails without routing transactions through traditional correspondent banks.

Waller described the accounts as a targeted way to provide basic Federal Reserve payment services to entities that today rely on third-party banks, while preserving safeguards against balance sheet and operational risks. The accounts would permit participation in key systems used for payments and settlement, but would carry operational limits designed to curb the Fed's exposure. Proposed restrictions include loss of daylight overdraft privileges, exclusion from discount window borrowing, possible balance caps, and other limits on services for which overdraft risk cannot be adequately controlled. Officials said the...