Federal Reserve (FED) · CoinDesk
In March, Kraken became the first crypto bank to get a limited master account
Compiled by KHAO Editorial — aggregated from 4 sources. See llms.txt for citation guidance.
✓ KHAO Verified
A day earlier, President Donald Trump issued a related executive order that asked the Fed to review how it grants uninsured depository institutions and non-bank financial firms access to payment accounts and services.
Key facts
- In March, Kraken became the first crypto bank to get a limited master account, though that access was granted by the Federal Reserve Bank of Kansas City and not under a federal rule from the Fed
- The U.S. Federal Reserve took another step toward special limited payment accounts that would give a lighter version of the master-account services the central bank offers to its fully-fledged banks
- A day earlier, President Donald Trump issued a related executive order that asked the Fed to review how it grants uninsured depository institutions and non-bank financial firms access to payment
Summary
The U.S. Federal Reserve took another step toward special limited payment accounts that would give a lighter version of the master-account services the central bank offers to its fully-fledged banks, opening a comment period on the latest description of the new accounts. Firms with diverse business models can use such accounts to clear and settle payments to increase speed and reduce their costs, but without master-account status, the Fed explained in a Wednesday statement. Obtaining this enhanced access to the Fed's payment rails has been a significant goal within the crypto sector, and the Fed's earlier proposal was commonly referred to as "skinny" accounts.
But in response to comments to the Fed since December, it did overhaul parts of the idea, noting that "closing balance limits would be based on an institution's expected payment activity and the maximum closing balance was increased.