The Federal Reserve has released a proposal for new "payment accounts," which would grant fintech and crypto companies limited access to the central bank's payment infrastructure. These "skinny" master accounts would allow firms to directly participate in payment systems for clearing and settling transactions, a move aimed at fostering innovation in the financial sector.

The proposal, announced last Friday by Federal Reserve Governor Christopher Waller, seeks to foster innovation in the payments sector while maintaining the safety and integrity of the U.S. financial system. "These new payment accounts would support innovation while keeping the payments system safe," Waller stated in a release accompanying the announcement. Unlike standard Federal Reserve accounts held by banks, these limited versions would not accrue interest, offer access to central bank credit facilities, or allow for correspondent banking services. Additionally, they would come with strict balance caps and transaction activity limits to mitigate risks.

This initiative represents a narrower, more targeted approach to expanding access, particularly for crypto-driven entities that have long advocated for integration into the Fed's infrastructure. Major U.S.-based crypto payment companies could potentially connect directly to Fed banking rails under the framework, marking a significant step toward mainstream adoption of digital assets in everyday transactions. The Fed's exploration of this alternative account type was first hinted at in October 2025 by Waller, amid growing pressure from the fintech industry for equitable access.

Industry experts view the proposal as a pragmatic compromise. "It's a way to embrace technological advancement without compromising on regulatory oversight," said Sarah Kline, a financial policy analyst at the Digital Finance Institute. However, critics worry it could introduce new vulnerabilities into the payment ecosystem, especially given the volatility associated with cryptocurrencies.

The Federal Reserve is now opening the floor for public input, with comments accepted through early 2026. If approved, the accounts could roll out as soon as next year, potentially reshaping how non-bank entities interact with the nation's core financial plumbing. Stakeholders from across the financial spectrum are encouraged to weigh in via the Fed's official channels.

This development comes at a time when the U.S. payments landscape is evolving rapidly, with initiatives like FedNow already accelerating real-time transactions. As crypto and fintech continue to push boundaries, the Fed's cautious step forward signals a willingness to adapt—albeit on its own terms.