Federal Reserve Proposes Limited Payment Accounts for Fintech and Crypto-Linked Banks

The US Federal Reserve has proposed creating a new type of payment account that would give fintech and crypto-linked banks limited access to its payment rails.

The proposal, released on Wednesday through a Federal Reserve Board request for comment and notice of proposed rulemaking, aims to provide nonbank financial institutions with a narrower pathway to participate in the US payment system.

Unlike traditional master accounts, these 'skinny' payment accounts would be limited to clearing and settlement only, without access to central banking tools such as the discount window or intraday credit.