The Federal Reserve has proposed a new type of account that could finally help fintech and cryptocurrency firms seeking to join the U.S. payment system.
It will be a limited option aimed at supporting innovative ideas while putting controls on associated risks.
Framework of Limited Access
On December 19, 2025, the Federal Reserve Board solicited public comment on payment accounts that would be available to eligible institutions for the sole purpose of clearing and settling payments.
These accounts are a variation of the current model of the master account.
They bear no interest, do not have access to Federal Reserve credit, and have balance caps to limit risks.
The institutions would have to fulfill the existing eligibility criteria for Federal Reserve services.
The caps would set overnight balances at the lesser of $500 million or 10% of the firm’s assets.
Holders could not offer correspondent services or settle payments for others. In this configuration, the entity targets firms with new business models, such as fintech and cryptocurrency.
The review process follows the Federal Reserve’s existing guidelines, which use a tiered system based on risk.
Insured depository institutions have lighter scrutiny, while non-insured firms-a common structure in crypto and fintech-undergo stricter checks.
Reviews draw on six principles that assess various risks, including those to financial stability, compliance, and operational strength.
Industry Impact
Fintech and cryptocurrency companies must now rely on banks for access to systems such as Fedwire, adding additional costs and delays.
Payment accounts would permit direct participation, greatly speeding up transactions while cutting fees.
This would help these firms give better services to customers.
It answers the cries for greater inclusion of outsiders in the payments system.
Christopher Waller, a Federal Reserve governor, supported such a proposal as a “skinny” master account, as the payment landscape changes.
Nevertheless, some officials argued that rules would need to be more stringent to prevent money laundering.
Next Steps
The comment period for the public will last 45 days following publication in the Federal Register.
Comments received will help carve out final rules. The balance between innovation and safety is a debate likely to be joined by industry groups and regulators.
With this proposal, the tide now turns.
It recognizes fintech and cryptocurrency as players in the world of finance.
When approved, it could expand competition and renew the banking system to cover digital assets.
This decision by the Federal Reserve aims to protect stability while opening the doors to new entrants.
