The U.S. Federal Reserve has proposed creating a new category of payment account that could give fintech and crypto firms limited access to the central bank’s payment infrastructure, marking a significant shift in the long-running debate over who can directly use the Fed’s payment rails.
The proposal would introduce a narrower version of the traditional Fed master account, allowing eligible firms to transfer money through the Federal Reserve system without granting them the full privileges available to commercial banks. The proposed accounts would not provide access to intraday credit, the Fed’s discount window, or interest on reserves deposited at the central bank.
