A new proposal from the Federal Reserve is now officially advancing “skinny” payment accounts, a lighter version of traditional key accounts that could eventually give cryptocurrency companies direct access to US payment paths.
For Ripple and the broader XRP community, the proposal is seen as one of the biggest institutional payment developments in years.
The Federal Reserve is moving toward limited access to cryptocurrency payments
This week, the Fed opened a 60-day general period Comment period For the revised Accounts Payable framework, sometimes called Thin Master Accounts.
The accounts will allow eligible cryptocurrency companies, stablecoin issuers, and fintech companies to settle payments directly using Federal Reserve infrastructure such as Fedwire and FedNow, without full traditional banking privileges.
However, the accounts come with significant limitations.
Businesses will not have access to intraday credit, discount window borrowing, or interest earned on reserve balances held at the Fed. Automated controls would also prevent overdrafts and reduce operational risks.
The proposal comes after years of pressure from cryptocurrency companies seeking direct access to US payment infrastructure rather than relying on intermediary banks.
Why is Ripple suddenly back in the spotlight?
Ripple has been one of the most closely watched companies associated with the main account discussion. The company previously applied for access to the Federal Reserve as part of its broader push to integrate its payment network and RLUSD stablecoin more deeply into traditional finance.
Stu Alderotti, previously Ripple’s chief legal officer, called narrow key accounts an “attractive idea” because it could allow for faster and cheaper redemptions of Ripple’s stablecoin RLUSD.
The timing is also notable because Ripple’s stablecoin RLUSD has already grown toward its reported market cap of $1.73 billion since its launch. exploration this; Coinbase, Circle, Anchorage Digital and Custodia Bank, all of which are said to have explored or applied for some form of payments access from the Fed.
Earlier this year, Kraken became the first cryptocurrency-focused institution to obtain a limited master account through the Federal Reserve Bank of Kansas City.
Political and regulatory pressures continue
Despite the growing momentum, significant obstacles remain. The Fed is currently asking regional reserve banks to pause new Tier 3 payment account determinations until December 2026 while regulators finalize the framework. Most cryptocurrency companies fall into the Tier 3 category.
At the same time, Elizabeth Warren It introduced amendments seeking to prevent cryptocurrency companies like Ripple from gaining access to Federal Reserve payments.
Cryptocurrency investors believe that direct access to payments from the Federal Reserve could significantly improve how Ripple settles US dollar transactions by reducing reliance on external banking partners.
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