Fed offers fintech companies and stablecoin issuers direct access to its payment system

Key points:

• The Federal Reserve has proposed giving stablecoin issuers and fintech companies direct access to its payment infrastructure without the involvement of traditional banks.
• Fed Governor Christopher Waller presented the concept of “payment accounts,” which will allow companies to connect to the Fed’s system while maintaining risk control.
• Companies such as Custodia Bank, Kraken, Ripple, and Anchorage Digital will be able to obtain simplified and expedited access to the Federal Reserve System’s infrastructure.

The Federal Reserve System (Fed) has proposed giving stablecoin issuers and fintech companies direct access to its payment infrastructure without the involvement of traditional banks.

Fed Governor Christopher Waller announced this at the first Payments Innovation Conference. He presented the concept of “payment accounts” (or “skinny master accounts”) for organizations that have a legal right to do so.

Some companies, such as Custodia Bank and Kraken, have sought to connect to Fed master accounts through the courts and may gain access much faster, bypassing the previous bureaucratic procedure.

What the Fed is offering

The proposed accounts will provide direct access to the Federal Reserve’s payment systems. However, the accounts themselves will have a number of restrictions, unlike traditional master accounts. Waller added:

“This payment account concept would be targeted to provide basic Federal Reserve payment services to legally eligible institutions that right now conduct payment services primarily through a third-party bank.”

Companies that receive such accounts will be required to comply with operational restrictions designed to limit risks to the Fed's balance sheet. In addition, these accounts will not earn interest on balances and may be subject to mandatory balance limits to control their size.

Ripple and Anchorage Digital, which have applied to open master accounts in 2025, may receive expedited decisions under the proposed framework.