Overview
- Waller said applicants must have a bank charter, countering assumptions that unchartered fintechs could seek direct access.
- Ripple’s chief legal officer called the concept attractive and noted the firm applied for a Fed master account in July.
- The proposed account would connect eligible entities to Fed payment rails but exclude interest on balances, overdraft facilities and discount-window access.
- Ripple said such access could speed and lower the cost of redeeming reserves for its dollar-pegged stablecoin RLUSD by reducing reliance on intermediaries.
- The Fed describes the plan as an early-stage prototype with no timeline and is gathering stakeholder input as banks warn about stability and competition risks.