The U.S. Central Bank Opens the Door to Crypto Innovation

Federal Reserve Governor Christopher Waller has expressed support for granting “skinny master accounts” to regulated crypto firms, a move that could expand access to the U.S. banking system while maintaining oversight and risk controls.

This approach would allow crypto companies to hold limited direct accounts at the Federal Reserve, enabling faster settlement and liquidity management without granting them full banking privileges.

Waller’s comments come amid growing pressure from both policymakers and the industry for more inclusive financial infrastructure.

For years, crypto companies have relied on intermediary banks to access payment rails, which has slowed transactions and created operational risks.

What Is a Skinny Master Account

A “skinny” master account would provide a restricted version of the accounts that commercial banks hold at the Federal Reserve.

Under this model, crypto and fintech firms could perform limited settlement functions while still being subject to strict compliance, liquidity, and audit requirements.

In practice, the model would create a bridge between the traditional banking system and blockchain-based finance, offering a pathway for institutional integration without compromising financial stability.

A Sign of Changing Attitudes

Waller’s position signals a broader shift in the Federal Reserve’s stance toward digital assets.

While the central bank has long been cautious about crypto exposure, the concept of limited master accounts indicates a growing willingness to embrace controlled innovation within the financial system.

The proposal also aligns with the U.S. government’s recent emphasis on fostering blockchain development while maintaining safeguards against illicit finance and systemic risk.

Industry Impact

For regulated crypto custodians, stablecoin issuers, and fintech firms, access to even limited Fed accounts could be a game changer.

It would reduce reliance on commercial banks, streamline settlements, and enhance liquidity for both institutional clients and retail-facing platforms.

Analysts suggest that this development could also strengthen the case for U.S.-based stablecoins, as direct clearing access would make it easier to maintain real-time dollar backing.

Outlook

The proposal for skinny master accounts is still under consideration, but early feedback from policymakers and economists has been positive.

If implemented, it could mark one of the most significant steps toward integrating crypto with traditional finance since the approval of Bitcoin ETFs.

For now, Waller’s remarks highlight that the Federal Reserve is no longer ignoring the digital asset economy - it is preparing to adapt to it.