The U.S. Federal Reserve Governor proposed giving cryptocurrency and fintech firms direct access to the central bank’s payment rails on October 21. The proposal intends to blur the lines between crypto, fintech, and traditional banking.
Speaking at the Federal Reserve’s first Payments Innovation Conference in Washington, Governor Christopher J. Waller announced the proposal of a “skinny master account,” a limited-access version of the accounts banks use to move money through the Fed’s payment rails.
“This is a new era for the Federal Reserve in payments—the DeFi industry is not viewed with suspicion or scorn,” Waller said, acknowledging that distributed ledgers and crypto-assets are a part of the financial mainstream.
What are “skinny master accounts”?
The so-called “skinny master accounts” are essentially trimmed-down versions of conventional master accounts. In the U.S., a master account is a bank’s or financial institution’s account held directly at the Federal Reserve. These conventional accounts act as the central hub for its reserves and liquidity.
Proposed accounts would offer limited access to the Fed’s payment infrastructure but come with tight restrictions. These accounts would not accrue interest, may be subject to balance limits, and would not qualify for overdrafts or access to the discount window. The streamlined structure would also speed up the review process for firms seeking access.
Waller added:
“Payments innovation moves fast, and the Federal Reserve needs to keep up.”
How crypto firms could benefit
For crypto-native fintechs and stablecoin issuers, this is a pivotal change. Most rely on partner banks to settle transactions through the U.S. payment rail, but that route is expensive and fragile. Direct Fed access, even in a limited form, would let blockchain-based businesses access cheaper and secure payments with the long-sought legitimacy they need.
The proposal reflects a broader evolution in the Fed’s approach. Once skeptical of crypto and decentralized finance (DeFi), the central bank is now engaging with it directly, researching tokenization, smart contracts, and AI as part of its own modernization efforts.
While the “skinny account” remains a “prototype idea” under study, it signals a clear message that the central bank sees a future where crypto and traditional finance share the same rails.
