The US Federal Reserve wants to give fintech companies, stablecoin issuers and crypto companies direct access to the central bank’s payment network. Fed Governor Christopher Waller announced during the Payments Innovation Conference that he is proposing a new type of account, the so-called “skinny master account.” According to Waller, it is time to embrace innovation, not avoid it.
Master account light for fintechs and crypto
So far, only traditional banks have direct access to the Federal Reserve’s payment system, known as Fed rails. Other companies, including crypto companies such as Custodia Bank, Kraken, Ripple and Anchorage, depend on partner banks for this.
The new proposal would also allow non-banks to open a limited version of such an account. This gives them direct access to the payment system, but without all the privileges of a full master account. For example, they cannot borrow money from the Fed and do not receive interest on their balance.
According to Waller, the idea is to allow new players into the payment system while keeping risks manageable.
Reporter Eleanor Terrett of Crypto In America called the plan a huge step for crypto and fintech companies that have fought for years to gain access to the Fed. Custodia Bank, led by Caitlin Long, even sued the central bank to enforce such an account.
Fed no longer wants to slow down innovation
Waller, who is seen as a crypto-friendly candidate to succeed Jerome Powell as Fed chairman in 2026, emphasized that the central bank no longer views DeFi with suspicion or disdain.
He said the decentralized finance sector is no longer on the fringes but has become part of the financial system.
The Fed governor sees the proposal as a compromise. It opens the door for innovative companies, while limiting the risk to monetary policy. He wants to gather feedback quickly and said the sector will hear more about the next steps soon.
Why this is important for the crypto market
An approved ‘skinny master account’ scheme would mean crypto companies gain direct access to the US payments infrastructure. This can speed up transactions, reduce costs and reduce dependence on banks.
This would be a breakthrough for companies like Ripple, Kraken and Custodia Bank. They can then process payments themselves instead of through intermediaries. That would be an important step towards full integration of crypto into the traditional financial system.
Bitcoin reacts cautiously positively
The Bitcoin price (BTC) reacted positively to the news and rose by 3.7 percent on Tuesday to approximately $ 112,700. This means that BTC is further recovering from the correction earlier this month. Analysts see the advance as a sign that investors are gaining confidence from the increasing institutional support in the United States.
The market seems to interpret Waller’s signal as a clear change of course at the Federal Reserve: from restraint to an attitude that actively wants to embrace innovation.
Source: https://newsbit.nl/bitcoin-stijgt-na-plan-van-fed-om-crypto-direct-toegang-te-geven/
