US Federal Reserve “Skinny Payment Accounts” Proposal for Crypto Firms and Fintech Banks

The US Federal Reserve has proposed creating limited “skinny payment accounts” that would allow eligible fintech companies and crypto linked banks to access parts of the US payment system. These accounts would offer restricted functionality compared to traditional master accounts and would not include full banking benefits such as interest payments or access to emergency lending tools.

The proposal was issued through a Federal Reserve Board request for public comment and a notice of proposed rulemaking. It specifically describes “skinny master accounts” designed for nonbank financial institutions that need basic settlement access.

Tier 3 account pause and key timeline

The Fed has asked regional Reserve Banks to pause decisions on Tier 3 master account applications while it completes the new rulemaking process. This temporary pause is expected to end by December 31, 2026.

A Board memo also listed pending Tier 3 applications as of February 28, 2026, including Kraken Financial, the banking arm of crypto exchange Kraken. Kraken later received a limited-purpose master account from the Federal Reserve Bank of Kansas City in March 2026 under Tier 3 rules.

Political push and regulatory limits

Even though President Donald Trump’s executive order supports wider fintech and digital asset integration into the US financial system, the proposal does not grant direct Fed master accounts to crypto exchanges. Firms must still operate through eligible banking institutions.

These payment accounts would only allow clearing and settlement functions. They would not provide interest or central bank emergency facilities. The idea was first introduced by Fed Governor Christopher Waller in October and expanded through 2026 discussions.