Fed proposes limited payment accounts for fintechs, others - Reuters

<a href="https://news.google.com/rss/articles/CBMiogFBVV95cUxQWXZQNVE2ajYwU183UXVqd0FOajdnUnBudHUxTThJbUEtR0l5YVhTcm5KRU9DSnctYWUzWm11djdpdVFfX1lmME5feFlSaWppc2E5S0kxV2dnTzdFYkotZWROWS00cE5KS0JoM2lYbkI3a0FoOUo2R3hGajlDVi1aM28zUGdSUm9jOFFZbTVwaDJ1Tk1rOHlsZWNkX0NNRDFiZUE?oc=5" target="_blank">Fed proposes limited payment accounts for fintechs, others</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

Fed Governor Christopher Waller announced plans to have a new set of streamlined payment accounts operational by the fourth quarter of 2026, aiming to grant firms access to the Fed’s payments infrastructure without accompanying services and backstops.

Fed Governor Christopher Waller stated that the Federal Reserve is studying the creation of a new account that would provide access to Fed payment services for firms that currently rely on third parties like banks for that access.

Fed Governor Christopher J. Waller announced plans to explore a new 'payment account' concept for financial innovators, offering basic Federal Reserve payment services to legally eligible institutions that currently operate through third-party banks with full master accounts.

The Fed's new 'payment accounts' would give non-bank companies limited direct access to Fedwire and FedNow, without the full privileges traditional banks enjoy.

The Federal Reserve is weighing a new 'payments account' model after Governor Christopher Waller outlined the concept at the Payments Innovation Conference, potentially opening a path for eligible non-bank firms including fintechs and stablecoin service providers to connect directly to the Fed’s payment infrastructure.

The Federal Reserve has proposed establishing limited payment accounts, allowing certain firms to access the Fed’s payment infrastructure with fewer protections than traditional bank accounts.

A newly introduced bipartisan House bill, the Payments Access and Consumer Efficiency Act of 2026 (PACE Act), would create a new category of federally-supervised financial institution – the 'registered covered provider' – designed to potentially unlock two commercially significant benefits for qualifying companies: first, the apparent ability to provide payment services nationwide; and second, eligibility to apply for direct access to the Federal Reserve’s core payment rails.

The Tenth Circuit ruled that the Federal Reserve has full discretion to deny master account applications, even from legally eligible institutions such as Custodia Bank, reinforcing the Fed’s authority to limit payment system access for crypto-focused or unsupervised firms.

The U.S. Federal Reserve proposed a new type of payment account designed for firms such as fintechs, allowing them to move money across the Fed’s payment infrastructure while offering fewer protections than traditional bank accounts.

The Federal Reserve has asked for public comment on a proposed 'payment account' that would give eligible financial institutions restricted access to central bank payment systems, existing solely to clear and settle payments without granting the broader privileges of a traditional master account.