Crypto Reporter: Federal Reserve Proposes Launching "Lite Master Account" to Provide Direct Payment Channels for Fintech Companies and Stablecoin Issuers

According to crypto journalist Eleanor Terrett, Federal Reserve Governor Chris Waller announced at the Federal Reserve Bank Payments Innovation Conference that the central bank is proposing to introduce a new type of restricted master account (called a "lite master account") that would allow all legal compliance institutions to directly access the Fed payment system without relying on a partner bank. The lite master account does not provide all the services of a full master account, such as borrowing from the Federal Reserve, but it is available to every legal compliance entity and the eligibility laws will not change.
This move will allow the Federal Reserve to give the green light to innovative banks, fintech companies, stablecoin issuers, and other payment companies. Eleanor Terrett said the move is significant for companies such as Custodia Bank and Kraken, which have been trying to obtain Fed master accounts for years, and Custodia has even taken the Fed to court. In addition, companies such as Ripple and Anchorage, which applied this year, may also be eligible for accelerated entry.