TechFlow news, October 21 — According to crypto reporter Eleanor Terrett, Federal Reserve Governor Chris Waller announced at the Federal Reserve Bank's payment innovation conference that the central bank has proposed a new type of restricted master account (called "streamlined master account") that would allow all legally compliant institutions direct access to the Fed's payment systems without relying on correspondent banks.
The streamlined master account does not offer all services of a full master account, such as the ability to borrow from the Federal Reserve, but every legally compliant entity can apply, and the legal eligibility requirements will remain unchanged. This move would open the door for innovative banks, fintech firms, stablecoin issuers, and other payment companies.
Eleanor Terrett noted that this step is significant for companies like Custodia Bank and Kraken, which have long sought access to a Federal Reserve master account—Custodia even sued the Fed. Additionally, companies that applied this year, such as Ripple and Anchorage, may now see accelerated approval processes.
