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The Federal Reserve is seeking public comment on a proposed limited “payment account” that could give legally eligible fintech and crypto-linked firms narrower access to Fed payment rails.
The proposed account would allow eligible firms to send and receive payments through Fed systems. It would not provide intraday credit, interest on balances or access to the discount window. The comment period will run for 60 days after publication in the Federal Register.
Limited Accounts Exclude Credit and Fed Backstops
The proposed accounts are sometimes described as “skinny master accounts,” but they would be more limited than traditional Fed master accounts. The Fed’s prototype would generally allow a firm to hold one Reserve Bank account, either a Payment Account or a Master Account.
The proposal would not change the underlying legal eligibility standard for Fed account access. It would instead create a narrower account structure for institutions that are already legally eligible.
Trump Order Gives Fed 120 Days to Review Access
The proposal came one day after President Donald Trump signed an executive order directing the Fed to review whether its current approach to payment-system access is limiting financial innovation.
The order asks the Fed to assess its authority to extend direct access to payment accounts and services to covered firms, including uninsured depository institutions and nonbank companies engaged in digital assets.
It also asks the Fed to report within 120 days on options for expanding access, legal barriers and whether regional Reserve Banks can independently approve or deny applications. The Fed had already floated the limited-account idea in December 2025, so the latest proposal builds on an earlier policy process.
Crypto Firms Seek Direct Fed Payment Rails
Fintech and crypto firms have long argued that direct access to Fed payment systems would reduce reliance on partner banks and improve settlement speed and cost. Pressure increased after the Kansas City Fed approved a limited payment account for Kraken in March, while Ripple, Anchorage Digital, and Wise have also sought similar access.
For digital asset firms, direct Fed payment access could support exchange banking, stablecoin settlement and tokenized-finance workflows without relying as heavily on commercial bank intermediaries.
Banks and Barr Warn on AML Safeguards
Banks have opposed broader access for nonbank firms, arguing that they could use core payment infrastructure without facing the same prudential oversight as insured depository institutions.
Fed Governor Michael Barr dissented from the proposal. He warned that it lacked sufficient safeguards against illicit-finance risks. The Fed will pause pending applications from nontraditional firms while it reviews the policy to ensure consistency across Reserve Banks.
The proposal does not give crypto or fintech firms automatic access to the Fed. It opens a public-comment process and gives the central bank a path to define a limited account model while weighing payment innovation against AML, oversight and financial stability risks.
