Federal Reserve Proposes 'Skinny Master Accounts' to Integrate Payment Innovators, Signals New Era for Crypto

Washington, D.C. – The U.S. Federal Reserve, through Governor Christopher Waller, has unveiled a proposal for "payment accounts," or "skinny master accounts," aimed at providing direct access to the central bank's payment rails for innovative financial firms, including those in the crypto sector. The announcement came during the Fed's inaugural Payments Innovation Conference on October 21, 2025, a landmark event designed to foster dialogue between traditional finance and the rapidly evolving digital asset ecosystem. This initiative signals a notable shift in the Federal Reserve's approach to emerging payment technologies.

Governor Waller emphasized a new stance for the central bank, stating, "My view from the Fed from now on is embrace the disruption, don't avoid it." He further clarified that "The DeFi industry is not viewed with suspicion or scorn," indicating a welcoming environment for crypto-native innovators. The conference, which CoinDesk streamed live, brought together leading industry experts to discuss tokenization, AI in payments, stablecoins, and the convergence of traditional and decentralized finance.

The proposed "skinny master accounts" are specifically tailored for institutions primarily focused on payment innovations. These accounts would grant access to the Federal Reserve's payment rails, bypassing the need for third-party bank relationships. However, they would come with certain limitations, such as no interest paid on balances, potential balance caps, and no access to daylight overdraft privileges or discount window borrowing. The Fed intends to gather industry input on this prototype, promising a streamlined review timeline for eligible entities.

This move by the Federal Reserve reflects a growing recognition of distributed ledgers and crypto assets as integral components of the financial system. The conference highlighted the importance of integrating these new technologies with existing infrastructure to enhance efficiency and stability. The exploration of these new account types underscores the Fed's commitment to actively participate in the ongoing payment revolution, ensuring the U.S. remains at the forefront of financial innovation.