Fed Simplifies Payment System Access for Crypto Firms

The US Federal Reserve has taken a significant step towards easing the access of cryptocurrency and fintech companies to its payment infrastructure.

As part of this effort, the Fed has proposed introducing a 'skinny master account' format, which would allow non-bank companies to conduct settlements directly through the Federal Reserve system without obtaining a full bank license.

This new format would impose certain restrictions, including no access to intraday credit or the discount window, no interest accrual on balances, and maximum balance limits based on transaction volume. The Fed emphasizes that this mechanism does not expand the legal criteria for access but would reduce dependence on intermediary banks and speed up payments.

The proposal also aligns with President Trump's executive order signed on May 19, which required the Fed to assess within 120 days all possibilities and legal barriers to expanding fintech and crypto companies' access to payment services. The initiative is particularly important for companies that have already gained limited access, such as Kraken, which received a 'limited master account' through the Federal Reserve Bank of Kansas City in March 2026.

It's worth noting that this proposal does not expand the legal criteria for access but would reduce dependence on intermediary banks and speed up payments. Companies would have to comply with strict anti-money laundering and risk management requirements.