Cryptocurrency Reporter: The Federal Reserve proposes to launch a "streamlined master account" to provide direct payment channels for fintech companies and stablecoin issuers

ChainCatcher news, according to crypto journalist Eleanor Terrett, Federal Reserve Governor Chris Waller announced at the Federal Reserve Bank's Payment Innovation Conference that the central bank proposed the introduction of a new type of restricted master account (referred to as the "streamlined master account"), allowing all legally compliant entities to directly access the Federal Reserve payment system without relying on partner banks.

This streamlined master account does not provide all the 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 eligibility legal rules will not change. This initiative will enable the Federal Reserve to greenlight innovative banks, fintech companies, stablecoin issuers, and other payment companies. Eleanor Terrett stated that this move is significant for companies like Custodia Bank and Kraken, which have been trying for years to obtain a Federal Reserve master account, with Custodia even suing the Federal Reserve. Additionally, companies like Ripple and Anchorage, which applied this year, may also accelerate their eligibility for access as a result.