Fed Explores ’Skinny’ Master Accounts to Bridge Crypto and Traditional Banking

The U.S. Federal Reserve is quietly advancing a proposal that could resolve years of friction between digital asset firms and traditional finance. Officials are considering 'skinny' master accounts—a limited-access version of the Fed's payment network designed for fintech and crypto companies. This move would bypass traditional banking intermediaries while maintaining risk controls.

Governor Christopher J. Waller framed the initiative as necessary to accommodate technology-driven finance without compromising systemic stability. The development follows the 2023 collapse of several crypto-friendly banks, which triggered widespread account closures critics dubbed 'Operation Chokepoint 2.0.'

For crypto firms, this represents a potential turning point. Direct Fed access could alleviate banking dependencies that have plagued the sector since Silvergate and Signature Bank failures. Custodia Bank's high-profile rejection in 2024 underscores the urgency of alternative solutions.