A new proposal from the Federal Reserve is now officially moving forward with “skinny” payment accounts, a lighter version of traditional master accounts that could eventually give crypto companies direct access to U.S. payment rails.
For Ripple and the broader XRP community, the proposal is being viewed as one of the biggest institutional payment developments in years.
Fed Moves Toward Limited Crypto Payment Access
The Federal Reserve this week opened a 60-day public comment period for its revised “payment account” framework, sometimes called skinny master accounts.
The accounts would allow eligible crypto firms, stablecoin issuers, and fintech companies to directly clear and settle payments using Federal Reserve infrastructure like Fedwire and FedNow, without receiving full traditional banking privileges.
However, the accounts come with major restrictions.
Firms would not receive access to intraday credit, discount window borrowing, or interest earned on reserve balances held at the Fed. Automated controls would also prevent overdrafts and limit operational risk.
The proposal follows years of pressure from crypto firms seeking direct access to U.S. payment infrastructure instead of relying on intermediary banks.
Why Ripple Is Suddenly Back in Focus
Ripple has been one of the most closely watched companies tied to the master account debate. The company previously applied for Federal Reserve access as part of its broader push to integrate its payment network and RLUSD stablecoin deeper into traditional finance.
Ripple’s Chief Legal Officer Stu Alderoty previously described skinny master accounts as an “attractive idea” because they could allow faster and cheaper redemption for Ripple’s RLUSD stablecoin.
The timing is also notable because Ripple’s stablecoin RLUSD has already grown toward a reported $1.73 billion market cap since launch.It’s not just Ripple that is exploring this; Coinbase, Circle, Anchorage Digital, and Custodia Bank, all of which have reportedly explored or applied for some form of Federal Reserve payment access.
Earlier this year, Kraken became the first crypto-focused institution to receive a limited master account through the Kansas City Federal Reserve Bank.
Political and Regulatory Pressure Continues
Despite growing momentum, major hurdles remain. The Fed is currently asking regional Reserve Banks to temporarily pause new Tier 3 payment account decisions until December 2026 while regulators finalize the framework. Most crypto firms fall into the Tier 3 category.
At the same time, Elizabeth Warren has introduced amendments seeking to block crypto firms like Ripple from receiving Federal Reserve payment access.
Crypto investors believe direct Fed payment access could significantly improve how Ripple settles U.S. dollar transactions by reducing reliance on outside banking partners.
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