Fed Offers Streamlined Payment Rails Access to Crypto Firms
The Federal Reserve is developing a new streamlined payment account model to grant eligible fintech and crypto firms direct access to its payment rails. Announced by Governor Christopher Waller at the October 21, 2025 Payments Innovation Conference, these “skinny” master accounts would carry balance caps, risk limits, no interest, and no discount‐window access. Only state-chartered or trust companies meeting AML/KYC and operational controls can apply. Direct access reduces settlement steps and counterparty risk, boosting efficiency for digital assets. This pilot follows the Fed’s April 2025 withdrawal of bank crypto guidance and complements ongoing blockchain, tokenization, and AI trials. Market observers predict stronger competition with intermediary banks and accelerated integration of digital assets into U.S. payment rails.
Bullish
This initiative could be bullish as direct payment rails access lowers counterparty risk, improves settlement efficiency, and fosters innovation in digital asset use. In the short term, crypto trading firms may experience reduced transaction costs and faster settlements, potentially increasing trading volumes. In the long term, competition with intermediary banks and integration into the Fed’s rails could drive broader adoption of digital assets, supporting price appreciation and market growth.