Anchorage Digital Bank has officially applied for a master account with the Federal Reserve, a move that would allow it to hold deposits and access payment systems directly. This application signals a broader push by crypto-native firms to secure a stronger foothold within the traditional financial infrastructure, enabling more efficient and scalable services.

The application comes at a time of increased scrutiny and a noteworthy development in the Fed's application review process. For the first time since the adoption of its 2022 guidelines, a Reserve Bank has rejected a master account request from a Tier 1 institution. These institutions are typically subject to a "less intensive and more streamlined review," making the rejection a significant data point for all applicants, including those in the digital asset space.

This development underscores the rigorous and lengthy process for gaining access to central banking facilities. While Anchorage's application represents a positive step for the industry, the rejection of a traditional institution highlights the challenges that remain for firms seeking to bridge the gap between crypto and mainstream finance.