Federal Reserve proposes new ‘skinny’ payment accounts with major restrictions for eligible institutions
The Federal Reserve has proposed a new type of payment account with significant restrictions for eligible financial institutions. This 'skinny master account' would allow access to limited Fed payment services but would not provide the full benefits of a traditional master account. The proposal aims to streamline access while addressing regulatory concerns about financial stability.
- ▪The new payment account is designed for institutions already eligible for a traditional master account.
- ▪It allows access to specific Fed payment services like Fedwire Funds and FedNow, but not to Fed credit facilities or older payment networks.
- ▪Balances in the account would earn no interest and payments must be pre-funded, with a cap on overnight balances.
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Federal Reserve proposes new ‘skinny’ payment accounts with major restrictions for eligible institutions The Fed's new payment account prototype offers a streamlined path to its payment rails, but with guardrails that tell you a lot about what regulators are worried about. Share Add us on Google by Editorial Team May. 20, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); The Federal Reserve Board is asking the public to weigh in on a…
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