Federal Reserve Proposes Direct Access for Fintechs with Lite Master Accounts

The Federal Reserve is moving towards greater integration of fintechs into the financial system by proposing ‘lite master accounts’ for qualified institutions. This would allow companies like stablecoin issuers and fintech firms to directly access the Fed’s payment system without requiring partner banks. Governor Chris Waller’s proposal at the Payment Innovation Conference marks a significant shift from traditional banking partnerships.