Fed proposes "skinny master account" for crypto and fintech organizations

The U.S. Federal Reserve (Fed) is seeking public input on a new type of “payment account,” unofficially called a “skinny master account,” which would allow certain eligible organizations — including crypto-related companies — limited access to the Fed’s payment system.

According to the proposal, this account would enable clearing and settlement of payments but would not have full privileges like a traditional master account, including earning interest on balances and overdraft rights. The Fed believes this model could support innovation while maintaining the safety of the payment system.

The idea has received support from lawmakers and crypto-friendly businesses, who argue that direct access to the Fed’s payment infrastructure would make payments faster, cheaper, and provide legal clarity for the industry.

However, some Fed leaders have expressed concerns about money laundering and terrorist financing risks, stating that the proposal does not clearly outline the necessary control measures. The Fed will accept feedback over the next 45 days.