Fed’s Waller proposes payment accounts to give crypto firms access to basic Fed services without needing full banking licenses.
Federal Reserve Governor Chris Waller has proposed a new “payment account” framework aimed at improving access to the Fed’s payment infrastructure for crypto firms. Speaking at the Federal Reserve’s payments conference, Waller explained how the proposal could help streamline financial access for institutions focused on payment technology, especially within the digital asset space.
Waller Suggests Payment Accounts to Support Payments-Focused Crypto Firms
During his remarks at the conference, Waller said he had asked the Fed staff to explore a concept called a “payment account.” This account would operate with fewer features than a full Fed master account, providing basic payment services to eligible institutions without requiring them to hold a full banking license.
Fed’s First Innovation Conference Highlights DeFi and Crypto’s Role in Mainstream Payments
This is a new era for the Federal Reserve and payments.
The DeFi industry is no longer viewed with suspicion or scorn; today, it is welcomed into the conversation on the future of… pic.twitter.com/hmfxRQDxmG
— Angelica Saldaña S.T.B.❤️🔥 (@AngelofYHVH) October 21, 2025
Waller referred to the account as a “skinny master account,” stating that it could give firms direct access to Fed payment rails. These rails are normally only accessible through banks with existing Fed master accounts. The initiative aims to support companies delivering payment services, including those in the crypto sector, by simplifying the process of accessing core payment infrastructure.
Proposal Could Streamline Fed Access Without Full Banking License
Many payment-focused institutions today operate through third-party banks to use Fed payment services. Waller explained that the proposed account could serve those who do not need all services provided under a full master account. This would also reduce the time and complexity involved in applying for one.
Crypto companies such as Ripple have shown interest in obtaining Fed master accounts. If Waller’s proposal is adopted, these firms could benefit from faster access to basic services without needing to meet the same standards as traditional banks. The Fed governor added that accounts would only be available to legally eligible institutions.
Fed Recognizes the Pace of Innovation in Payments
Waller emphasized the need for the Federal Reserve to keep up with rapid developments in payment technologies. He stated that the proposed payment accounts would go through a simplified review process, allowing for quicker decision-making.
“Payments innovation moves fast, and the Federal Reserve needs to keep up,” Waller said during his speech. The new approach reflects a shift in the Fed’s willingness to adapt its frameworks to evolving financial technologies.
While no formal implementation timeline was announced, the idea marks a notable step in bridging the gap between traditional financial systems and emerging crypto firms.
