Fed Proposes ‘Skinny’ Accounts for Fintechs and Stablecoin 

Key Insights:

• The Fed’s ‘skinny’ account plan may reduce fintechs’ reliance on traditional partner banks for transactions.
• Ripple, Kraken, and Custodia could gain faster access to Fed systems under new account structure.
• Streamlined access may improve stablecoin settlement speed and attract institutional interest in crypto platforms.

Governor Chris Waller announced a new proposal during the Federal Reserve’s Payments Innovation Conference that could allow more financial firms to connect directly to the central bank’s payment systems. The new structure, referred to as a “skinny master account,” would give legally eligible institutions access to Fed payment rails without needing a traditional banking partner.

Unlike full master accounts, these limited-access accounts would not include features such as borrowing from the Fed. However, eligibility rules will not change. Only institutions that are already legally allowed under current law would qualify.

More Direct Access for Fintechs and Digital Asset Firms

Companies such as Custodia Bank and Kraken, which have spent years applying for Fed access, are expected to benefit. Custodia has also challenged the Fed in court over access issues. Firms like Ripple and Anchorage, which applied in 2025, could also see faster reviews if the proposal moves forward.

This setup may give fintechs and digital asset firms a way to operate more efficiently. Many of these companies have had to depend on third-party banks for basic financial services. A direct link to the Fed’s system could reduce that reliance.

Potential Shifts in Stablecoin and Crypto Activity

If approved, this account structure may improve how stablecoins are issued and settled. It could make transactions faster and lower the need for intermediaries. This might affect market activity in trading pairs such as USDT/USD or USDC/USD, especially on networks like Ethereum where stablecoins are heavily used.

“Access to the Fed’s rails without needing a partner bank could be a turning point,” one market analyst noted, though added, “we’ll still need to see how the rollout happens.”

Broader Financial Markets May Respond

This move may also increase interest from hedge funds and asset managers that have avoided digital assets due to risk concerns. With direct Fed access, firms offering crypto services could lower settlement times and improve security for large transactions.

Stocks linked to crypto or payment technologies may also see more attention. In previous regulatory shifts, such as ETF approvals or policy changes, trading volumes and prices for both crypto assets and related equities have jumped.