Overview
- At the Federal Reserve’s Payments Innovation Conference, Christopher Waller outlined a limited “payment account” concept that could grant direct connectivity to the Fed’s payment systems without full master‑account privileges.
- The envisioned accounts would curb risk by excluding interest on balances, daylight overdrafts and discount‑window borrowing, and by potentially imposing caps on balances.
- Waller said the Fed will solicit industry input and provide updates soon, and the lower‑risk accounts could follow a more streamlined review timeline.
- Eligibility would remain constrained to entities already permitted under existing law, and any implementation would require broader Federal Reserve action beyond one governor’s proposal.
- Coverage notes that firms long seeking access—such as Custodia Bank, Kraken, Ripple and Anchorage—could reduce reliance on intermediary banks if the framework advances.