Two weeks ago, Federal Reserve Governor Waller announced plans for a “skinny” master account – an account held by an institution directly with the Federal Reserve. Today he said that the central bank is moving at startup speed to launch the pared down master accounts, which will be renamed to payment accounts. “The goal here, assuming nothing goes haywire, is to have these up and operationalized by the fourth quarter of 2026,” he said, speaking during the Philadelphia Fed Fintech conference.
Governor Waller dispelled a misconception that fintechs might be eligible for skinny accounts. “You’ve got to be an eligible depository institution,” he said. This contrasts with similar offerings in the UK and Europe which allow limited access to non-bank payment providers. However, many stablecoin issuers are applying for national trust bank charters.
“So if you’re what we call a tier one bank, full service, FDIC, fully regulated all the bells and whistles, you get the gold medal. And if you’re a little farther down the chain, you might get a silver medal. And if you’re a tier three, what we view as a more risky type (of) bank, you get the bronze. But you get a medal. It’s not like you get the gold or nothing,” said Governor Waller.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
