Anchorage Digital Bank Applies for Federal Reserve Master Account

Anchorage Digital Bank has formally applied for a Federal Reserve master account, according to a database update published Friday. The MOVE confirms months of speculation after CEO Nathan McCauley declined to comment on the matter earlier this year.

The crypto bank, which serves institutional clients, submitted its application to federal regulators on August 28. Anchorage remains the only digital asset company with a national trust bank charter, granted by the OCC in 2021. While the charter allows it to operate as a federally regulated trust bank, it does not provide the same payment access as a Fed master account.

A master account WOULD enable Anchorage to settle transactions directly with the central bank and hold balances with the Federal Reserve. Such access is critical for depository institutions to manage reserves and utilize the Fed’s payment services.

The Fed’s updated 2022 guidelines suggest Tier 1 institutions typically undergo a streamlined review process. However, the latest database update reveals a Tier 1 institution’s application was recently rejected—an unusual development given the preferential treatment such applicants usually receive.