Fed “payment account” proposal limits crypto banks’ Fedwire access

The Federal Reserve has proposed a new “payment account” for eligible non-bank financial institutions, expanding how crypto and other payment-focused firms can access Fed payment rails for clearing and settlement. This follows President Trump’s executive order asking the Fed to review broader master-account access. Key restrictions for the Federal Reserve payment account are designed to limit risk to the Reserve Banks: no intraday credit, no discount window, and no interest on balances at a Reserve Bank. Account holders would only use automated controls that prevent overdrafts, with access focused on clearing and settlement payment services. The plan mirrors the Fed’s December 2025 “skinny” master account prototype, but updates closing balance limits. Those limits are now tied to an institution’s expected payment activity, and the maximum closing balance has been increased. The Fed says the structure balances innovation with “material risks.” Industry status: Kraken Financial received a limited Fed master account in March and gained direct Fedwire access. Ripple, Anchorage Digital, and Wise are still pursuing similar access. The Fed also urges Reserve Banks to pause some “Tier 3” account-access decisions while policy work completes. The public comment period lasts 60 days from Federal Register publication. For traders, this is a settlement-infrastructure and compliance story. The Federal Reserve payment account could improve institutional on/off-ramp efficiency for approved entities, but the constraints make immediate price impact likely modest.