Fintechs Back Fed Payments Account, Paving Crypto Access
Fintechs Back Fed Payments Account That Could Open Rails to Crypto Firms
Several fintech companies are backing a proposal that would allow a new type of payments account at the U.S. Federal Reserve, a move that supporters say could broaden access to core payment rails that underpin the country’s financial system.
The proposal centers on a Fed payments account designed to give eligible nonbank payment providers a way to connect more directly to Federal Reserve services used for moving money between institutions. These services are typically accessed through banks, which act as intermediaries for many fintechs.
Supporters argue that a direct account structure could reduce reliance on sponsor banks and streamline how payment firms handle settlement and liquidity. Because many crypto companies rely on the same payment infrastructure to process customer deposits, withdrawals, and transfers, expanded access could also have implications for crypto firms that meet eligibility requirements.
The development matters in part because access to U.S. payment rails has become a critical operational issue for the digital asset industry. In recent years, crypto-related businesses have faced shifting banking relationships and tighter risk controls, making stable connectivity to payment systems a key point of friction.
Any change to who can access Federal Reserve payment services also raises broader policy questions about oversight and risk. Direct access to central bank infrastructure is traditionally limited, reflecting concerns around supervision, operational resilience, and how nonbanks should be regulated when performing bank-like functions.
The fintech backing for a Fed payments account proposal underscores a wider push to modernize payment access in the U.S., even as regulators and policymakers weigh how best to balance innovation with financial stability and consumer protection.
