Federal Reserve Proposes Limited Access Payment Accounts For Crypto And Fintech Firms

Federal Reserve Governor Christopher J. Waller proposed a new payment account framework for crypto and fintech companies on October 21, 2025. According to Cointelegraph, Waller announced the "skinny" master account concept during the Fed's inaugural Payments Innovation Conference in Washington.

The payment accounts would grant fintech firms direct access to Fed payment services. Currently, these companies must conduct payment operations through third-party banks. Waller stated the accounts would provide Federal Reserve payment rail access while controlling various system risks.

The proposal targets institutions legally eligible for accounts that currently use intermediary banks for payment services. reports the accounts may exclude features like interest payments, daylight overdraft privileges, or discount window access. Balance caps could limit the accounts' impact on the Fed's balance sheet.

Direct Payment Access Addresses Industry Banking Challenges

The proposal arrives as crypto firms continue facing banking access difficulties. During the Biden administration, at least 30 tech and crypto founders lost banking access through what critics called Operation Chokepoint 2.0. The Fed's new framework could resolve years of regulatory friction.

Custodia Bank founder Caitlin Long praised Waller's announcement on social media. She thanked the governor for recognizing the Fed's previous mistakes in blocking payment banks from master accounts. Long noted the Fed previously claimed such firms posed financial stability risks without justification.

Companies including Ripple and Anchorage Digital filed master account applications in 2025. reports these firms could receive accelerated decisions under the proposed framework. Custodia Bank spent years in legal battles after the Fed rejected its master account application in 2023.

The streamlined review process acknowledges payment technology's rapid pace. Waller told attendees the Federal Reserve must keep up with payment innovation. Lower-risk payment accounts would receive faster approval timelines than traditional master account applications.

Crypto Integration Reflects Broader Institutional Acceptance Trend

The Fed's policy shift represents growing recognition of digital assets in traditional finance. Waller declared the Payments Innovation Conference marks a new era for the Federal Reserve. He stated the DeFi industry no longer faces suspicion or scorn from central bank officials.

This institutional acceptance accelerated throughout 2025 across multiple fronts. We previously reported that institutional Bitcoin adoption surged significantly, with Bitcoin ETFs accumulating over $65 billion in assets under management by April 2025. The coverage also noted 15 US states advanced Bitcoin reserve plans with proposed allocations up to 10 percent of public funds.

The Fed has been researching blockchain technology for payment applications before this announcement. Waller revealed the central bank conducts hands-on research on tokenization, smart contracts, and AI-based payments. These technologies could provide opportunities to upgrade Fed payment infrastructures.

The conference brought together crypto executives and Fed officials for substantive discussions. Attendees included Chainlink CEO Sergey Nazarov, Coinbase CFO Alesia Haas, and Circle President Heath Tarbert. Their participation signals traditional finance's increasing openness to distributed ledger technology integration.

Stablecoin issuers could benefit substantially from direct Fed payment access. Direct connections would eliminate intermediary costs and reduce settlement times. The framework may accelerate stablecoin adoption for cross-border payments and institutional treasury operations.

Traditional banks may face increased competition from fintech and crypto payment providers. Direct Fed access reduces the competitive moat that master accounts previously provided to established financial institutions. Industry observers expect this could drive innovation in digital payment solutions.