Fed’s New Proposal Could End Crypto’s Reliance on Partner Banks

The Federal Reserve is considering a groundbreaking proposal that would allow fintech firms and crypto platforms direct access to its payment rails, bypassing traditional banking intermediaries. Governor Christopher Waller outlined the plan at the Fed’s Payments Innovation conference, emphasizing the creation of 'skinny master accounts' for non-bank entities.

These accounts WOULD grant access to critical infrastructure like Fedwire and ACH, enabling faster settlements and reserve holdings—but without interest accrual or emergency borrowing privileges. The move could significantly reduce crypto’s dependency on partner banks, streamlining operations for firms across the ecosystem.

Market participants view this as a potential watershed moment for institutional crypto adoption. By removing banking bottlenecks, the Fed may accelerate integration between traditional finance and digital asset platforms—though regulatory scrutiny will likely intensify as the lines blur.