Fed Unveils Skinny Master Accounts for Fedwire Access
At the Fed’s Payments Innovation Conference, Governor Christopher Waller proposed new “skinny master accounts” to give eligible fintechs and stablecoin issuers direct access to Fedwire and ACH. These accounts let firms hold reserves with the Fed, bypass intermediary banks and accelerate settlement from days to seconds. The framework excludes interest on balances and discount-window privileges but could unlock billions in tokenized asset flows and overcome persistent crypto debanking challenges. By connecting stablecoin platforms directly to U.S. payment rails, the proposal aims to lower costs, boost efficiency and integrate TradFi with DeFi. The initiative has entered a public comment phase as the Fed seeks feedback on modernizing its payment infrastructure.
Bullish
Granting fintechs and stablecoin issuers direct access to Fedwire and ACH will likely bolster confidence in stablecoin infrastructure and reduce operational frictions. In the short term, market reaction may be muted as the proposal enters public comment. Over the long term, faster, cheaper settlement and billions in tokenized asset flows could attract institutional demand, enhance liquidity and support price stability—factors that point to a bullish outlook for stablecoins and related markets.