Federal Reserve Proposes New “Skinny Master Accounts”
At the Federal Reserve’s Payments Innovation Conference on October 21, 2025, Governor Chris Waller announced plans for a new type of limited-access master account. These “skinny master accounts” would allow all legally eligible institutions to connect directly to the Fed’s payment system. This includes fintech firms, stablecoin issuers, and crypto custodians.
Unlike traditional master accounts, these accounts would not include borrowing privileges or emergency lending. However, they would enable direct settlement capabilities, a feature previously limited to licensed banks. Waller emphasized that eligibility rules under current law would remain unchanged.
Impact on Digital Asset Firms
This proposal could be a breakthrough for digital asset companies facing regulatory challenges. Firms like Custodia Bank and Kraken Financial have sought direct access to the Fed’s payment rails. Custodia even filed a lawsuit against the Fed over delays in its application process.
Other companies, such as Ripple and Anchorage Digital, which submitted applications earlier this year, could also benefit if the new account model is approved. The move may accelerate the integration of stablecoins and tokenized settlements into the U.S. financial system.
Significance for the Crypto Industry
The proposal has drawn attention from the crypto sector. By allowing nontraditional financial firms direct access to the Fed, it could blur the lines between banks and blockchain technology. This change may help bring digital assets closer to mainstream financial infrastructure.
