Ripple, Circle Could Gain Fed Access as Board Seeks Feedback on ‘Skinny Master Account’

The Federal Reserve of the United States has given an opportunity to the public to share their opinions on a new payment accessibility system called the skinny master account. Fed Governor, Chris Waller introduced a proposal for it earlier this year. This marks a positive for crypto firms such as Ripple and Circle, which could gain direct, although limited, Fed access as they advance payment innovations.

Federal Reserve Requests Public Input on Payment Account

In a press release, the Federal Reserve Board requested public input on a “payment account” that enables eligible financial institutions, such as Ripple and Circle, to use it for the limited purpose of clearing and settling payments.

The U.S. central bank noted that in recent years, rapid developments in the payments industry have led to innovative approaches to banking, and financial institutions with new business models seeking access to the Fed’s payment services. The Fed’s request for information comes just months after Fed Governor Chris Waller first floated the idea of these payment accounts, likening them to a “skinny master account.”

The Federal Reserve stated that this payment account would be tailored to meet the limited needs of eligible financial institutions seeking payments and settling services as they look to support innovation and promote a safe and efficient payment system. The U.S. central bank added that this tailoring could reduce risk to the payment system and, as a result, requests for payment accounts could generally receive a streamlined review.

It is worth noting that Ripple had earlier this year applied for a Fed master account at the same time it applied for a national bank trust charter. However, the Fed has yet to grant this request.

What The Account Would Look Like?

The Federal Reserve explained that a payment account would be distinct from a master account, which is what financial institutions currently use to access payment services from the Fed. The payment account would not pay interest, would not have access to Fed credit, and would be subject to balance caps that separate it from a master account.

Additionally, the Fed stated that a payment account would not expand or otherwise change legal eligibility for access to its payment services. Meanwhile, commenting on this move, Fed Governor Chris Waller remarked that these new payment accounts would support innovation while keeping the payments system safe. “This request for information is a key first step to ensuring that the Fed is responsive to evolutions in how payments are made,” he added.

Pro-crypto Senator Cynthia Lummis also released a statement, praising this initiative. She stated that the skinny master accounts will enable responsible innovation and make payments faster, cheaper, and safer. The senator also mentioned that this is a “big step towards making things right” after years of Operation Chokepoint 2.0.

Skinny master accounts will enable responsible innovation and make payments faster, cheaper, and safer.

My statement ⬇️ pic.twitter.com/eNYwSduSGy

— Senator Cynthia Lummis (@SenLummis) December 19, 2025

The Federal Reserve noted that the comment period for the proposed payment accounts will close 45 days after publication in the Federal Register.

Fed Payment Account Will Transform Payments Model 

According to industry observers, the Fed proposal is not just a periodic review of policies. Industry observer, Nfoz, referred to the Fed payment account as a structure that enables less risks and promotes innovation. However, there are still legal qualification requirements, and thus the structure will not accommodate every fintech or crypto firm.

Adam indicated that if the Federal Reserve granted access to Ripple’s U.S. trust entity, the firm would use RLUSD to settle directly with the Fed. This would reduce the use of correspondent banks and increase speed and cost efficiency.

He added that this might benefit the On-Demand Liquidity model created by Ripple, moving fiat over Fed rails. Also, XRP becomes on-chain liquidity, creating a hybrid payment model.