Federal Reserve Explores Direct Payment Access for Crypto and Fintech Firms

The Federal Reserve is considering a groundbreaking move to open its payment rails to digital asset firms. Governor Christopher J. Waller revealed at the October 2025 Payments Innovation Conference that Fed staff are examining 'payment accounts'—informally called 'skinny master accounts'—that WOULD allow qualified non-bank entities direct access to central bank infrastructure.

These proposed accounts would come with significant limitations: no interest accrual, no discount window access, and strict balance caps. The Fed emphasizes this remains an exploratory concept rather than finalized policy. Eligibility appears restricted to 'legally eligible' entities, leaving ambiguity around which crypto custodians, trust companies, or state-chartered firms might qualify.

The development marks a potential watershed moment for institutional crypto adoption. By granting direct access to Fed payment systems, regulators could dramatically improve settlement efficiency for digital asset transactions—though the guarded approach reflects persistent concerns about financial stability risks.