Federal Reserve Board member Chris Waller has proposed a new type of account with direct access to the Fed's payment system.
This model, called a “Limited Access Master Account” or “Skinny Master Account” for short, gives all legally compliant institutions, including fintech companies, stablecoin issuers, and clearinghouses, direct access to the Fed’s payments infrastructure.
The announcement was made at the Fed's Payments Innovation Conference, as reported by crypto journalist Eleanor Tellet. Waller emphasized that this account type does not include all of the full-access “master account” services available to banks, such as the ability to borrow from the Fed. However, he noted that any legally compliant institution can have this account, and existing legal compliance rules remain unchanged.
The new system is seen as a significant advance for crypto-focused banks like Custodial Bank and Kraken, which have long struggled to gain direct account access from the Fed. During this process, Custody Bank even filed a lawsuit against the Federal Reserve. It is also reported that this measure could speed up the process for companies like Ripple and Anchorage that applied by 2025.
Experts say the “skinny master account” model signals the Fed's more open approach to financial innovation, while also potentially softening the boundaries between crypto finance and traditional finance.
*This is not investment advice.
