The US Federal Reserve is initiating a discreet yet potentially decisive shift for the crypto ecosystem. The central bank has launched a public consultation on the creation of new ‘payment accounts’, a deliberately restricted version of the famous master accounts, which would provide access to the Fed’s payment rails without the heavy requirements associated with full banking services.
These accounts would primarily target technology companies, including crypto players, seeking direct access to the Fed’s clearing and settlement systems, without requiring credit, deposit interest, or monetary policy services. The consultation is open for 45 days, marking the first formal step towards a long-debated reform in Washington.
Addressing Challenges Faced by Crypto Companies
Master accounts are rare keys. They allow a financial institution to connect directly to the central bank’s payment infrastructures. For crypto companies, accessing them has often been a daunting task, with regulatory uncertainties and prudential requirements incompatible with their models.
With these new payment accounts, the Fed is exploring a middle path. The idea is to allow certain entities to use the payment rails ‘solely for the purpose of clearing and settling their flows‘, without earning interest, without access to the Fed’s credit window, and with strict balance limits. A minimalist architecture designed to reduce risks while fostering innovation.
Christopher Waller Pushes a Pragmatic Vision
Governor Christopher Waller is the main advocate of this approach. As early as October, he was discussing ‘skinny’ master accounts tailored to new forms of financial intermediation. For him, these payment accounts could support payment innovation while preserving system security.
This request for information is a key first step to ensure that the Fed stays in tune with evolving payment methods.
Beneath the surface, a realization: onchain finance, stablecoins, and crypto payment infrastructures will not disappear, and keeping them on the sidelines of the central system could increase risks rather than contain them.
Persistent Concerns About Compliance
However, the proposal does not have unanimous support. Michael Barr, former head of banking supervision at the Fed, has publicly opposed the initiative. According to him, the project lacks specifics on safeguards against money laundering and terrorism financing, especially for institutions that the Fed does not directly oversee.
This opposition highlights the persistent divide between proponents of a regulated integration of crypto into existing infrastructures and advocates of a more restrictive approach. The debate is no longer about the existence of crypto players, but about the level of access reasonable to grant them.
A Strategic Signal for the Future of Payments
Even in its limited form, this initiative sends a strong signal. The Fed implicitly acknowledges that certain innovations, often driven by crypto, require new interfaces with the central bank. If these payment accounts come to fruition, they could become a key component for stablecoin issuers, fintechs, and onchain payment infrastructures operating in the United States.
Nothing is set in stone yet. But by launching this consultation, the Fed admits that the status quo is no longer sustainable. For the crypto ecosystem, this may be the first serious crack in the wall that has so far separated blockchain from the most fundamental payment rails of the US financial system.
