Federal Reserve's "Payment Accounts" Could Be a Turning Point? Fintech Supports New Channels to Curb Crypto Bank Disintermediation

An overhaul that could reshape the U.S. payment system is being strongly promoted by the fintech industry. Led by the U.S. Fintech Council, several industry associations recently submitted comments to the Federal Reserve, urging it to accelerate the development of a “payment account” prototype that would provide qualifying non-bank financial institutions with direct access to the payment system.

Phil Goldfeder, CEO of the U.S. Fintech Council, stated that a carefully designed payment account can both expand competition and promote innovation without increasing systemic risk. This mechanism is seen as an upgrade to the long-standing model of “access through initiating banks to the core clearing network,” potentially reducing costs, lowering counterparty risk, and improving settlement efficiency.

The so-called payment account is a “simplified main account” solution. Federal Reserve Board member Christopher Waller proposed that it would have a balance cap, be non-interest bearing, and restrict access to key clearing systems to avoid disrupting the existing financial stability framework. At the end of last year, the Fed signaled its first move toward granting limited direct access, and is now advancing prototype development.

Supporters believe this reform could alleviate the long-standing “de-banking” dilemma faced by the crypto industry. Due to some banks’ cautious stance toward digital asset companies, many fintech and crypto-related institutions struggle to obtain stable clearing channels. If the payment account is implemented, these institutions would no longer rely entirely on intermediary banks, making the settlement process more direct.

However, banking industry groups have expressed concerns, arguing that this model could provide “deposit-like” functions for new financial forms such as stablecoins, but lack deposit insurance and unified regulation. They worry that this could amplify potential risks in regulatory gray areas. Although the Fed’s proposal does not explicitly name crypto companies, industry insiders generally believe that stablecoin issuers and related service providers will be the primary beneficiaries.

The background of this plan also involves legal disputes surrounding main account applications. Custodia Bank, a crypto custody bank, sued after its application was rejected; despite multiple defeats, the case has prompted regulators to reconsider access mechanisms. Waller has stated that the Fed plans to launch this simplified account framework by the end of 2026 to introduce a more inclusive channel into the payment system.