State of Crypto: Skinny Master Accounts and Stablecoins

Fed. Governor Waller's connection could boost stablecoin firms successful the U.S.

Oct 25, 2025, 2:00 p.m.

Federal Reserve Governor Christopher Waller floated the thought of the cardinal slope creating a "skinny maestro account" for crypto firms which would assistance them entree to the Fed's outgo rails portion keeping them distant from a afloat Fed maestro account.

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The narrative

Federal Reserve Governor Christopher Waller suggested this week that crypto companies could usage a constricted mentation of the Fed's maestro relationship system, which would fto these firms entree U.S. outgo rails portion limiting their vulnerability to definite risks the Fed would privation to avoid.

Why it matters

Firms similar Custodia person already spent years trying to summation entree to a Fed maestro account, which would springiness them a nonstop enactment to the cardinal bank's outgo infrastructure and relieve them of the request to enactment with an intermediary bank. Waller's connection for a much constricted entree could payment stablecoin issuers successful peculiar (and by extension, the broader crypto sector).

Breaking it down

Under Waller's proposal, which helium called a "skinny maestro account," the Fed would fto companies entree its outgo rails, but not "the afloat suite of Federal Reserve fiscal services," helium said during his opening remarks astatine the Fed's Payments Innovation Conference connected Tuesday.

"To power the size of the accounts and associated impacts connected the Fed's equilibrium sheet, the Reserve Banks would not wage involvement connected balances successful a outgo account, and equilibrium caps whitethorn beryllium imposed," said Waller. "These accounts would not person daylight overdraft privileges — if the equilibrium hits zero, payments volition beryllium rejected. They would not beryllium eligible for discount model borrowing oregon person entree to each Federal Reserve outgo services for which the Reserve Banks cannot power the hazard of daylight overdrafts."

Linda Jeng, the CEO of Digital Self Labs and a lecturer astatine Georgetown University, likened Waller's connection to the thought of constrictive banks, which enactment arsenic banks but bash not indebtedness funds.

"Payment stablecoin issuers already run arsenic a signifier of constrictive slope — holding fully-backed reserves and facilitating payments alternatively than lending. Yet the GENIUS Act does not assistance them nonstop entree to Fed outgo rails, the 1 measurement that would integrate these stablecoin issuers into the U.S. monetary system," she wrote successful an sentiment portion for CoinDesk.

This would person the added payment of ensuring stablecoin issuers are backed by the Fed itself, giving the Fed much tools to negociate immoderate imaginable systemic risks, she wrote.

Waller's connection successful peculiar whitethorn payment stablecoin issuers, peculiarly successful airy of the GENIUS Act and the accelerated ongoing maturation of this conception of the crypto market. Multiple companies person applied for maestro relationship entree already successful hopes of moving past moving with third-party banks.

Former World Bank President David Malpass said astatine ACI Worldwide's payments acme that the proposal, if enacted, would assistance "defend the dollar's purchasing power," according to a transcript of his comments shared with CoinDesk.

"There's a planetary contention for marketplace stock successful stablecoins," helium said.

Waller noted successful his code that "this is conscionable a prototype thought to supply immoderate clarity connected however things could change."

"As Federal Reserve unit analyse this idea, we volition prosecute with each funny stakeholders to perceive perspectives connected the benefits and drawbacks to this approach," continued Waller. "You volition beryllium proceeding much astir this shortly."

Thursday

• 14:00 UTC (10:00 a.m. ET) The Senate Banking Committee said it would clasp a information proceeding connected a fig of candidates, including for Travis Hill to go the seat of the Federal Deposit Insurance Corporation (Hill is presently the acting chair).

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