Fed Proposes ’Skinny Master Accounts’ for Fintech and Crypto Firms

The Federal Reserve is advancing a plan to grant limited-access master accounts to non-bank institutions, including fintech companies and cryptocurrency custodians. Governor Chris Waller unveiled the proposal at the Payments Innovation Conference, framing it as a way to expand direct access to Fed payment rails while maintaining existing eligibility standards.

These 'skinny' accounts WOULD exclude traditional banking privileges like borrowing but enable direct settlement—a function previously exclusive to licensed banks. "Every legally eligible entity could get one," Waller stated, signaling a potential regulatory thaw for digital asset firms that have long faced banking bottlenecks.

The MOVE could resolve key infrastructure challenges for crypto-native institutions like Custodia Bank, which has struggled to secure master account access. By decoupling payment infrastructure from full banking privileges, the Fed appears to acknowledge the growing role of alternative financial architectures.