Federal Reserve moves toward narrower, crypto-driven take on master accounts

The U.S. Federal Reserve took a first step toward establishing a more limited version of its so-called master accounts, welcoming input on how the central bank might formulate “payment accounts” that would grant access to its payment rails without firms having to jump through the considerable hoops that would grant fuller services.

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The Fed said in a Friday statement that it was requesting information on how to satisfy the incoming requests from firms that rely on new technology to more easily tap into services “for the express purpose of clearing and settling the institution’s payment activity,” according to a board memo on the concept. The public comment window will be open for 45 days.

Fed master accounts are direct conduits

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