Federal Reserve Proposes Limited “Payment Accounts” Long Pursued by Crypto Firms

The Federal Reserve Board proposed Wednesday to establish a new “payment account” that would give legally eligible financial institutions direct access to the central bank’s payment rails for the specific purpose of clearing and settling transactions, a move that could open a formal path for crypto firms and other non-bank fintechs to connect to the Fed’s plumbing.

The proposal comes one day after President Trump signed an executive order directing the Fed to review expanding access to master accounts. The speed of the response suggests the Fed had the proposal ready and was waiting for the political signal.

This story is an excerpt from the Unchained Daily newsletter.

Holders would have no access to intraday credit or the discount window, would not earn interest on balances held at a Reserve Bank, and would only have access to payment services with automated controls to prevent overdrafts. The Board said the structure is designed to “support innovation by serving the clearing and settlement needs of certain eligible institutions while also mitigating material risks to the Reserve Banks and payment system.”

The proposal is substantially similar to the prototype the Fed outlined in its December 2025 request for information on so-called “skinny” master accounts. The updated version includes some adjustments based on public comments: closing balance limits are now based on an institution’s expected payment activity, and the maximum closing balance was increased from the December version.

The provision most directly benefits entities like Wyoming Special Purpose Depository Institutions and crypto-native banks that have pursued Fed access. Kraken Financial won a limited Fed master account in March, the first crypto firm to secure direct Fedwire access. Ripple, Anchorage Digital, and money-transfer firm Wise are among those still pursuing similar access.

To promote consistency, the Board is encouraging Reserve Banks to temporarily pause decisions on access requests from institutions that fall within Tier 3 of its Account Access Guidelines until the policy development process is complete. The comment period runs 60 days from publication in the Federal Register.