The Federal Reserve is signaling a new openness toward digital innovation and plans to give companies broader access to its payment infrastructure. At the annual Payments Innovation Conference, Federal Reserve Governor Christopher Waller introduced the concept of so-called “Skinny Master Accounts” — simplified master accounts designed for modern payment providers

Waller, appointed by President Donald Trump in 2020, explained that these accounts would allow fintech companies, stablecoin issuers, and other payment providers to connect to the Fed’s systems without having to be traditional banks.

“I wanted to send a message that this marks a new era for the Federal Reserve in payments — the DeFi industry is no longer viewed with suspicion or disdain,” Waller said.

According to Waller, the project is still in the prototype phase. The goal is to provide innovative companies with access to basic payment services of the Federal Reserve without granting them full access to credit facilities or other safety mechanisms. The accounts will not accrue interest, allow overdrafts, or provide access to the Fed’s discount window.

In his opening remarks, Waller emphasized that “innovation in payments is advancing rapidly, and the Federal Reserve must keep pace.” He noted that cryptocurrencies and distributed ledger technologies have already become part of the financial ecosystem and are no longer at the margins.

Waller’s statement marks a shift away from the previously restrictive approach toward digital assets that prevailed under the Biden administration.

By introducing the “Skinny Master Account” concept, the Federal Reserve is effectively taking a step closer to the crypto sector. What was once viewed as a risk is now increasingly seen as an opportunity to align innovation and stability within the global payment system.

Rate cuts could give new momentum to risk assets like Bitcoin
Rate cuts could give new momentum to risk assets like Bitcoin / Source: CME Group

At the same time, the crypto market is closely watching the upcoming Fed meeting on October 29. According to CME Group data, the probability of a 25 basis point rate cut is 98.9%. Such a move could boost “risk-on” assets, including Bitcoin — a development eagerly awaited by investors.