Fed Board Member Chris Waller has proposed a new type of account that would provide direct access to the Fed’s payment system.
This model, called the “limited-access master account,” or “skinny master account” for short, will give all legally compliant institutions, including fintech companies, stablecoin issuers, and payment institutions, direct access to the Fed’s payment infrastructure.
The announcement was made at the Fed’s Payments Innovation Conference, as reported by crypto journalist Eleanor Terrett. Waller emphasized that this account type won’t include all the full-access “master account” services available to banks, such as borrowing authority from the Fed. However, he noted that any legally compliant institution can have this account, and existing legal compliance rules won’t change.
The new system is seen as a significant development for crypto-focused banks like Custodia Bank and Kraken, which have long struggled to obtain direct account access from the Fed. Custodia Bank even filed a lawsuit against the Fed during this process. It’s also being reported that this move could expedite the process for companies like Ripple and Anchorage, which applied before 2025.
According to experts, the “skinny master account” model demonstrates the Fed’s more open approach to financial innovation, while also potentially softening the boundaries between crypto finance and traditional finance.
*This is not investment advice.