Nikolas Sargeant
Federal Reserve Governor Christopher J. Waller floated the idea of “skinny” payment accounts while speaking at the Payments Innovation Conference. This move would make it easier for smaller financial institutions to join the central bank’s payment systems, lifting burdens for cryptocurrency companies.
"I believe we can and should do more to support those actively transforming the payment system. To that end, I have asked Federal Reserve staff to explore the idea of what I am calling a 'payment account,'" said Waller.
The announcement arrives as welcome news for an industry that has struggled with banking access in recent years. During the previous administration, crypto and tech founders reported widespread debanking, with critics describing the phenomenon as a coordinated effort dubbed Operation Chokepoint 2.0. The collapse of crypto-friendly banks in 2023 further intensified these challenges, prompting allegations of government pressure on traditional banks to sever ties with digital asset firms.
Caitlin Long, CEO of Custodia Bank, took to X to thank Waller.
THANK YOU, Gov Waller, for realizing the terrible mistake the Fed made in blocking payments-only banks from Fed master accounts, and re-opening the access rules the Fed enacted to keep @custodiabank out. The Fed told courts that such firms would put financial stability at risk…
— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) October 21, 2025
While the payment account concept remains in exploratory stages, Waller revealed that the Fed is simultaneously conducting research on blockchain technology, tokenization, smart contracts, and AI-based payment systems. The central bank aims to evaluate whether these emerging technologies could enhance its own payment infrastructure while better understanding innovation occurring throughout the payments ecosystem.
