Crypto Journalist: The Federal Reserve Proposes Launching a "Streamlined Master Account" to Provide Direct Payment Channels for Fintech Companies and Stablecoin Issuers

According to ChainCatcher, as reported by crypto journalist Eleanor Terrett, Federal Reserve Governor Chris Waller announced at the Federal Reserve Bank’s Payments Innovation Conference that the central bank is proposing a new type of restricted master account (referred to as a “streamlined master account”), which would allow all legally compliant institutions to directly access the Federal Reserve’s payment system without relying on partner banks.

This streamlined master account does not provide all the services of a full master account, such as the ability to borrow from the Federal Reserve, but every legally compliant entity can apply, and the eligibility legal rules will not change. This move will enable the Federal Reserve to give the green light to innovative banks, fintech companies, stablecoin issuers, and other payment companies. Eleanor Terrett noted that this is significant for companies like Custodia Bank and Kraken, which have been trying for years to obtain a Federal Reserve master account, with Custodia even taking the Federal Reserve to court. In addition, companies such as Ripple and Anchorage, which applied this year, may also accelerate their access to eligibility as a result.