Proposed “payment account” could reshape access to US central bank infrastructure without full banking privileges
The US Federal Reserve has opened a public comment period on a proposed account structure designed to modernize access to its payment systems. The initiative, referred to as a “payment account”, could offer fintech and crypto-focused firms a direct but limited connection to central bank infrastructure, reflecting broader changes in how payments and financial services operate.
The proposed payment account sometimes described as a “skinny master account” would allow eligible institutions to clear and settle certain transactions without meeting all the requirements associated with traditional master accounts. According to the Federal Reserve, the goal is to support innovation while maintaining payment system safety.
The concept responds to rapid developments in digital payments, blockchain-based settlement tools, and new financial business models. By tailoring access, the Fed believes these accounts could reduce systemic risk and allow for a more streamlined review process for applicants.
Concerns Over Oversight and Financial Crime Risks
Not all policymakers are aligned on the proposal. Some officials have raised concerns that extending access to institutions outside direct Federal Reserve supervision could introduce money laundering and terrorist financing risks if safeguards are not clearly defined. These concerns highlight the tension between innovation and regulatory oversight.
Payment-focused crypto companies are among those that could benefit from this framework, potentially strengthening the link between digital asset platforms and traditional financial rails. Such access would mark a shift from previous years, when parts of the crypto industry argued they faced systematic barriers to banking services.
Unlike full master accounts, payment accounts would not earn interest, provide access to central bank credit, or offer unrestricted balances. The public comment period will remain open for 45 days after formal publication, with the Federal Reserve targeting operational readiness in late 2026.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.