Fed Proposes 'Skinny Master Accounts' for Crypto Firms

The Federal Reserve has taken a significant step towards integrating cryptocurrency and fintech companies into its payment system by proposing the creation of 'skinny master accounts.' These accounts would allow eligible firms to access the Fed's core payment system, including Fedwire, for clearing and settling US dollar transactions.

However, unlike traditional master accounts available only to traditional banks, skinny master accounts would not provide access to intraday credit, the discount window, or interest on reserve balances. This limitation is aimed at minimizing potential risks associated with crypto firms' volatility and lack of transparency.

The proposal, which was formally announced on May 20, 2026, marks a significant shift in the Fed's stance towards cryptocurrency and fintech. It follows an executive order from President Trump that directed regulatory agencies to review rules restricting crypto firms from accessing Fed infrastructure. The order also asked the Fed to clarify its role in approving or denying master account applications.

Ripple, Anchorage Digital, and money-transfer firm Wise are among the companies actively pursuing master account access. Stablecoin issuers and firms focused on tokenized treasuries and settlement infrastructure are expected to be among the primary applicants once the formal skinny master account framework is finalized.