Fed Proposes New Account Model for Fintechs & Stablecoin Issuers

The Federal Reserve is exploring a new account model, dubbed ‘skinny master accounts,’ designed to facilitate direct access to the Fed’s payment system by fintech firms and stablecoin issuers. These limited-access accounts would provide institutions with the ability to settle transactions directly with the central bank without relying on traditional banks, as per a statement by Governor Chris Waller at the Payments Innovation Conference on Tuesday.