Federal Reserve proposes "skinny master account" for crypto firms

The conference brought together regulators, technologists, and private-sector innovators to explore how decentralized finance (DeFi), stablecoins, AI, and tokenization are reshaping the future of money. 

Waller used his keynote to position the Fed as an active participant in this transformation, signaling a more open and collaborative approach to crypto-native payment infrastructure.

He noted that the DeFi industry is no longer viewed with suspicion, adding that “we are well into a technology-driven revolution in payments, and I am here to say that the Federal Reserve intends to be an active part of that revolution.”

Waller described the account as a “payment account” available to institutions already eligible under current Fed rules. The accounts would provide access to Fed payment rails but would not pay interest on balances, would not allow overdrafts and would not permit use of the Fed's discount window. Federal Reserve staff may set balance caps for these accounts.

He proposed the accounts would undergo a streamlined review process because they carry a reduced risk profile. The announcement is especially significant for firms like Custodia Bank, Kraken, and Anchorage, which have spent years seeking direct access to the Fed system. Some even took the Fed to court over delays in master account approvals.

Federal Reserve staff will engage with stakeholders to refine a prototype and collect feedback as the concept moves through an exploratory phase.