Fed Proposes Master Accounts Without Credit or Interest for Coinbase
President Trump signed an executive order directing the Federal Reserve to review granting crypto firms direct access to U.S. payment rails, potentially allowing Coinbase to bypass banking intermediaries. The Fed opened comments on a proposal for 'limited master accounts' without intraday credit or interest, a model tested by Kraken.
1. Executive Order Seeks Direct Payment Rail Access
President Trump signed an executive order directing the Federal Reserve to assess granting crypto firms direct access to U.S. payment rails, potentially enabling major platforms, including Coinbase, to hold master accounts that settle transactions directly and reduce reliance on third-party banks.
2. Federal Reserve Proposes Limited Master Accounts
The Federal Reserve has opened a public comment period on a proposal to create 'limited master accounts' for crypto firms that exclude intraday credit, discount window access and interest on balances, mirroring the model already granted to Kraken through the Kansas City Fed.
3. Potential Impact on Coinbase Operations
If these measures are finalized, Coinbase could see faster settlement times, lower transaction costs and improved liquidity management, strengthening its appeal to institutional clients and potentially boosting its transaction revenues.