The Federal Reserve has formally requested public input on payment accounts known as 'skinny master accounts' as Ripple nears securing one of these accounts. According to reports from AMBCrypto, the new accounts would allow fintechs and crypto firms to access the Fed's payment rails, FedNow and Fedwire, for faster clearing and settlement purposes. The proposed payment account would be tailored to support innovation by serving the clearing and settlement needs of certain eligible institutions while also mitigating material risks to the Reserve Banks and payment system. The central bank has opened a comment period on the proposed new accounts, which have long been pursued by cryptocurrency firms such as Coinbase Global (NASDAQ: $COIN) and Ripple. The proposal comes one day after President Trump signed an executive order directing the Fed to review expanding access to master accounts, with the Fed's speedy response suggesting the proposal was ready and waiting for the political signal.
Ripple stands out among firms poised to gain from a payment account, with its RLUSD stablecoin and cross-border payments solutions set to see enhanced efficiency through direct Fed payment system access. As reported by CoinGape, crypto firms such as Ripple, Anchorage Digital, Circle, and Custodia Bank have applied for master accounts, with Kraken receiving approval in March 2025 as the first crypto firm to secure direct Fedwire access. This marks the next formal step in Governor Christopher Waller's payment account implementation process, following the public comment period on the proposal that closed in February. Ripple's potential access to the Fed's payment system represents a significant milestone in its efforts to integrate with traditional finance.
Under the Federal Reserve's proposal, crypto firms would not have access to intraday credit or the discount window, and would not earn interest on balances held at a reserve bank. According to the Fed's statement, these accounts are designed to support innovation while maintaining robust safeguards against misuse. Crypto companies would only have access to payment services with automated controls to prevent overdrafts from occurring. The updated version includes closing balance limits based on an institution's expected payment activity and an increased maximum closing balance from the December 2025 prototype. To finalize this skinny-account policy, the regulator will temporarily pause Tier 3 master-account applications, which are mostly sought by uninsured crypto firms and fintechs. The Fed Board is urging reserve banks to temporarily pause decisions on new 'Tier 3' master account access requests until December 2026, allowing the Federal Reserve to complete its policy development process regarding skinny master account proposals.
The announcement followed U.S. President Donald Trump's recent executive order that instructed the Fed to review policies and integrate fintechs and crypto firms in the payment ecosystem. As reported by AMBCrypto, the special payment account for fintechs was first floated by Federal Reserve Governor Christopher Waller last October, with the regulator issuing the latest update as a formal proposal. The proposal will undergo a 60-day public feedback period before the Fed issues a formal final rule, falling within the three-month review period issued by Trump's order. However, Fed Governor Michael Barr said he won't back the skinny account proposal, noting that 'It does not provide sufficiently specific and robust safeguards to protect against the accounts being used for money laundering and terrorist financing by institutions we do not supervise.'
Reacting to the formal proposal, Sen. Cynthia Lummis hailed Governor Waller and thanked him for making commonsense changes to the proposal in response to stakeholder feedback. According to AMBCrypto, if finalized and formalized as a rule, the proposal would mark a major structural win for crypto firms besides reinforcing credibility and mainstream adoption. However, Senator Elizabeth Warren has submitted more than 40 amendments to the CLARITY Act, with one to block the Fed from issuing master accounts to crypto companies, including Ripple. She also questioned the OCC's bank charter approvals for crypto firms such as Ripple and Coinbase. The move is part of laying the groundwork for the implementation of the GENIUS Act, the U.S. stablecoin law passed last year, which is set to be effective from July 2026.
XRP bulls are strongly holding the price above key levels despite uncertainty in the markets, with a potential Fed master account access for Ripple among the key catalysts keeping the community bullish on the token. As reported by CoinGape, the proposal includes changes such as having closing balance limits based on an institution's expected payment activity and increasing the maximum closing balance. The regulatory developments come as the crypto industry continues to push for broader access to traditional financial infrastructure, with the Fed's proposal representing a significant step toward mainstream integration of digital assets in the U.S. payment system.
