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In a landmark address at the Federal Reserve’s first Payments Innovation Conference, Governor Christopher J. Waller declared that crypto innovators are now welcome on the Fed’s home field. He also alluded to the possibility that all eligible financial institutions may soon receive direct access to the Federal Reserve system via "skinny" master accounts.
What’s the Scoop?
- Fed Opens Door to DeFi: Governor Waller declared that the era of viewing crypto with “suspicion or scorn” is over. Speaking Tuesday, Waller stated the Federal Reserve is entering a “new era in payments," one that welcomes DeFi innovators to the table.
- Crypto in the Payments Mainstream: Waller noted that distributed ledgers, stablecoins, and tokenized assets are now “woven into the fabric of the payment and financial systems.” He emphasized that while the private sector should continue to lead innovation, the Fed intends to “be an active part of that revolution.”
- Unprecedented Fed Access: In a notable policy proposal, Waller unveiled a prototype for a new kind of Federal Reserve account aimed at fintech and payments innovators. The so-called payment account, or skinny master account, would give any legally eligible institution direct access to the Fed’s payment rails without the full privileges of a traditional master account.
- Skinny Master Account Features: Skinny master account will provide direct access Federal Reserve payment rails, but may be balance capped and exclude standard master account features like interest, overdrafts, and discount window privileges. The accounts are intended to give innovators faster, lower-risk access to Fed infrastructure while controlling systemic risk.
- Structural Tone Shift: Waller’s comments mark a continued departure from the Federal Reserve's previously terse stance towards crypto. Over the past year, the Fed have reversed prior guidance discouraging bank involvement with digital assets and removed “reputational risk” as a supervisory consideration, two moves perceived as wins for the crypto industry.
Bankless Take:
Skinny master account access would be a huge win for the safety of eligible crypto payments providers, who would no longer need to store dollar liquidity at run-prone banking partners. Although the Fed does not appear intent on offering interest or borrowing capabilities for these accounts, skinny master accounts will likely become powerful tools in the arsenals of crypto-enabled stablecoin and payments providers, like 
Circle and Stripe.
Governor Waller delivers opening remarks at the Payments Innovation Conference: https://t.co/NftHSMlgM1
— Federal Reserve (@federalreserve) October 21, 2025
Watch live: https://t.co/5cGZF8gWgvhttps://t.co/FJa6TbkDMt
Learn more about Governor Waller: https://t.co/x9pLY09hPB
