Catenaa, Monday, December 22, 2025- The US Federal Reserve on Friday asked for public comment on a proposed payment account that would give certain eligible institutions limited access to the central bank’s payment services without the full privileges of a traditional master account.

In a request for information, the Fed described the account as a way for institutions to clear and settle payments directly with the central bank while operating under defined restrictions.

The proposal has informally been referred to by policymakers as a “skinny master account.”

The Fed said the payment account would differ from a standard master account by limiting features such as interest on balances and overdraft access.

Master accounts allow direct access to Federal Reserve payment systems and represent the most direct link to the US money supply available to financial institutions.

According to the Fed, the proposed account is intended to support new payment models while maintaining safeguards in the financial system. The central bank said it is also considering additional risk controls, including specific reporting requirements for account holders.

The idea was first outlined publicly in October and has drawn attention from lawmakers and firms involved in digital asset markets, some of which currently rely on partner banks to access Fed payment rails.

Supporters say a limited-access account could reduce reliance on intermediaries and improve efficiency for payment-focused institutions. Critics have raised concerns about oversight, including whether adequate protections would be in place to prevent illicit financial activity.

The Fed acknowledged those concerns and said the comment process is intended to help shape the design of the account, including eligibility standards and compliance expectations.

Public comments on the proposal are due within 45 days, after which the Fed will review submissions before deciding whether to move forward.