Fed Proposes Framework for Non-Bank Firms to Access Payment Rails

The U.S. Federal Reserve has taken a significant step towards opening up its payment system to non-bank firms, including crypto companies. A revised proposal issued by the Fed establishes a framework for limited payment accounts, commonly referred to as 'skinny' master accounts.

These accounts would allow eligible firms to clear and settle payments through the Federal Reserve's (Fed) payment rails, but with certain restrictions. Payment account holders would not receive intraday credit, discount window access, or interest on balances. Automated controls would also prevent overdrafts, ensuring that firms do not overdraw their accounts.

The proposal follows a request for information in December 2025, which sought to clarify the Fed's stance on allowing non-bank firms to access its payment system. The revised framework increases maximum closing balance limits based on expected payment activity, providing greater flexibility for participating firms.

Notably, the Fed has asked regional banks to pause consideration of certain applications while finalizing the rule. This move is seen as a gesture towards ensuring a smooth transition and minimizing potential disruptions in the market.