Federal Reserve Proposes Limited Payment Accounts for Nonbank Firms

The Federal Reserve has taken a step towards broadening direct access to its payment system for nonbank financial institutions, including crypto-linked firms. The proposal, which has been met with cautious optimism from industry stakeholders, aims to provide limited access to Fed payment rails for clearing and settlement without compromising core safety and supervisory standards.

The proposed 'skinny master accounts' would allow eligible fintechs and banks to interact with the US payments system, but would not grant them full access to central bank tools or interest accrual. The Fed's cautious approach reflects a desire to balance innovation with risk controls, particularly in the wake of President Donald Trump's administration signaling support for broader fintech and digital asset integration.

The pause on Tier 3 account-access requests is expected to last until December 31, 2026, when the rulemaking process concludes. This development has significant implications for crypto-linked firms seeking direct access to Fed master accounts, with Kraken Financial's experience serving as a precedent. The firm was granted a limited-purpose master account by the Federal Reserve Bank of Kansas City in March 2026.