Fed Proposes ’Skinny’ Master Accounts for Crypto Banks to Expedite Access to Payment Systems
Federal Reserve Governor Christopher Waller has introduced a proposal to grant 'skinny' master accounts to innovation-focused banks, including those in the cryptocurrency sector. These accounts would provide qualified access to the Fed's payment systems but exclude certain privileges like interest earnings and overdraft facilities. Balance caps may also be imposed to mitigate risk.
The move could significantly accelerate onboarding for crypto banks, which have long struggled to secure full master accounts. However, critics like Custodia Bank’s Caitlin Long caution that eligibility criteria might still exclude pivotal industry players.
This development marks a potential turning point for crypto institutions seeking parity with traditional banks, though the practical implications of 'skinny' accounts remain to be seen.
