The Federal Reserve, led by Governor Chris Waller, has announced plans for a new type of limited-access master account aimed at benefiting cryptocurrency-focused banks and companies. This announcement was made during the Federal Reserve’s Payment Innovation Conference on October 21.

This innovative “skinny master account” system will provide crypto-banks and major exchanges direct access to the Fed’s payment infrastructure without needing traditional partner banks. Arthur Hayes, co-founder of BitMEX, asserted, “The Fed is quickly moving to destroy commercial banking in the US.” He further remarked, “This is Trump’s revenge for debanking his family.”

Eleanor Terrett, host of Crypto in America, elaborated that this new account system will allow any legally eligible institution to access Fed services, giving more flexibility to fintechs, stablecoin issuers, and crypto companies. She noted, “This is a big deal for companies like Custodia Bank and Kraken, which have spent years trying to secure a Fed master account.”

Caitlin Long, CEO of Custodia Bank, emphasized that this could expedite access for entities like Ripple and Anchorage that applied for accounts this year. Meanwhile, David Beckworth, a senior research fellow, commented on the implications of Waller’s announcements for banks, who are likely feeling uneasy about such significant changes.

As the discussion continues around these developments, Matt Marcus, CEO of Modern Treasury, has pointed out the potential advances in AI and blockchain technologies, especially in light of previous administrations’ resistance to such innovations. At the same panel, Cathie Wood, CEO of ARK Invest, shared insights alongside other industry leaders such as Alesia Haas (CFO of Coinbase), Emily Sands (Head of A at Stripe), and Richard Widmann (Head of Strategy at Google Cloud).

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Tags: Banks, Federal Reserve