Limited-access payment accounts could reshape how nonbank and crypto firms connect to the U.S. payments system
The U.S. Federal Reserve has opened a public consultation on a proposed “payment account,” informally known as a skinny master account, that would allow eligible institutions to access core payment services without receiving the full privileges of a traditional Fed master account. The move signals a potential shift in how innovation-driven financial firms interact with the central bank.
Under the proposal, the new payment account would enable institutions to clear and settle payments directly with the Federal Reserve, while excluding key benefits such as earning interest on reserve balances or accessing overdraft and liquidity facilities. These limitations are designed to reduce systemic risk while still expanding access to the national payments infrastructure.
The Fed emphasized that the account is intended to support innovation without compromising safety, particularly as payment technologies and business models evolve.
Institutions without master accounts are currently forced to rely on intermediary banks, adding cost, friction, and operational risk. A limited-access payment account could provide a more direct pathway for payment-focused fintech and crypto-related firms to participate in settlement systems, without opening the door to full monetary privileges.
Supporters argue the proposal could make payments faster, cheaper, and more transparent. However, critics within the central bank caution that the framework must clearly address anti–money laundering and counterterrorist financing safeguards, especially for entities outside direct Fed supervision.
If adopted, the skinny master account could mark a structural change in U.S. payment access, balancing innovation with financial stability.
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