Fed Opens Direct Payment Access for Crypto Firms in Landmark Proposal
The Federal Reserve unveiled a groundbreaking payment account model during its inaugural Payment Innovation Conference, granting stablecoin issuers and cryptocurrency companies limited access to central bank infrastructure. Fed Governor Christopher Waller's proposal creates a direct pathway to Fedwire and ACH systems without requiring full master accounts - a strategic move that could reshape digital asset liquidity management.
This narrow banking approach deliberately excludes credit functions, focusing solely on payment efficiency. Stablecoin operators currently forced to route reserves through commercial banks may now hold funds directly with the Fed, potentially accelerating redemption speeds and reducing counterparty risk. Custodia Bank CEO Caitlin Long hailed the shift as corrective action for previous regulatory missteps.
