Federal Reserve Proposes New “Payment Account” to Expand Fintech Access to Central Bank Payment Services

On May 20, 2026, the Federal Reserve Board released a proposal for a new “payment account” that legally eligible financial institutions could use exclusively for clearing and settling payments. Account holders would lack intraday credit, discount-window borrowing, and interest on balances, and would be subject to automated overdraft controls. The proposal does not alter the legal eligibility criteria for Fed accounts or payment services.

Federal Reserve Proposes New “Payment Account” for Fintechs and Non-BanksFed Consults on Widening Access to Payment ServicesFederal Reserve Board requests public comment on a proposal to establish a "payment account," which legally eligible financial institutions could use for the specific purpose of clearing and settlingFederal Reserve Proposes Limited “Payment Accounts” Long Pursued by Crypto Firms

The proposal builds on a December 2025 request for information on “skinny” master accounts and an executive order signed the day before, directing the Fed to review master-account access. Comments led to changes: closing-balance limits now reflect each institution’s expected daily payment volume, and the maximum closing balance was raised. Eligible participants include federally insured banks, fintechs, Wyoming special-purpose depository institutions, and crypto-native firms Kraken Financial, Ripple, Anchorage Digital, and Wise.

Federal Reserve Proposes Limited “Payment Accounts” Long Pursued by Crypto FirmsFederal Reserve Proposes New “Payment Account” for Fintechs and Non-BanksFed Consults on Widening Access to Payment ServicesFederal Reserve Board requests public comment on a proposal to establish a "payment account," which legally eligible financial institutions could use for the specific purpose of clearing and settling

The new account is limited to clearing and settlement of payments. Holders receive no intraday credit, no discount-window borrowing, and no interest on balances. Automated controls prevent overdrafts. Closing-balance limits are calibrated to an institution’s projected daily payment activity, and the ceiling on balances has been increased relative to the 2025 prototype to accommodate higher volumes.

Federal Reserve Proposes New “Payment Account” for Fintechs and Non-Banks

The Board states the account is intended to support fintech innovation while mitigating risks to the Reserve Banks and the payment system. It requires holders to manage illicit-finance risks and expects them to operate without credit extensions. The Board also urges Reserve Banks to pause decisions on Tier 3 access requests until the policy is finalized.

Fed Consults on Widening Access to Payment Services

The Fed has not disclosed numerical thresholds for closing-balance limits, nor has it clarified whether eligibility criteria differ for crypto-native firms. Data on usage volumes and the impact on payment participants remain unavailable.

Federal Reserve Proposes New “Payment Account” for Fintechs and Non-Banks

• “support innovation by serving the clearing and settlement needs of certain eligible institutions while also mitigating material risks to the Reserve Banks and payment system.” — Federal Reserve Board

Federal Reserve Proposes Limited “Payment Accounts” Long Pursued by Crypto Firms

• “The comment period will close 60 days after publication in the Federal Register.” — Federal Reserve Board

Federal Reserve Board requests public comment on a proposal to establish a "payment account," which legally eligible financial institutions could use for the specific purpose of clearing and settling

• “Kraken Financial won a limited Fed master account in March, the first crypto firm to secure direct Fedwire access.” — Unchained Daily

Federal Reserve Proposes Limited “Payment Accounts” Long Pursued by Crypto Firms

• “While the policy is being finalized, the Board has encouraged Reserve Banks to temporarily pause decisions on access requests from Tier 3 institutions.” — Federal Reserve Board

Federal Reserve Proposes New “Payment Account” for Fintechs and Non-Banks

The comment period ends 60 days after the proposal’s publication in the Federal Register. Afterward, each Reserve Bank will retain discretion to grant or deny payment-account access, completing the policy-development process.

Federal Reserve Board requests public comment on a proposal to establish a "payment account," which legally eligible financial institutions could use for the specific purpose of clearing and settling