Anchorage Digital says Fed payment account proposal falls short of master account access

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Fed payment account proposal critique

Highlights

Anchorage Digital's comment letter states the Federal Reserve's proposed payment account lacks FedACH access, imposes strict limits, and is not a viable master account substitute.
The proposed payment account framework would place Anchorage and similar institutions under intense review without granting key privileges such as intraday liquidity or interest on reserves.
Industry responses reveal divides: the Blockchain Association echoes commercial impracticality concerns, while major policy groups warn less-regulated institutions could gain risky payment system access.

Concerns over account design and access

As reported by The Block, Anchorage Digital says in a comment letter filed this week that the Federal Reserve's proposed payment account is not a practical replacement for a traditional master account for institutions like itself.

The federally chartered national bank says it supports the Fed's effort to modernize payment system access, but argues the proposed framework would place it in a tier subject to intense review alongside institutions that do not have a federal supervisor. In a statement, the bank says the proposed account lacks FedACH access, imposes overnight balance limits, offers no intraday liquidity and pays no interest on reserve balances, making it an unworkable substitute for the master accounts member national banks have held for more than a century.

Anchorage applied for a master account in August 2025. Such an account gives financial institutions direct access to the Federal Reserve's payment systems, while firms without one typically must rely on partner banks to provide payment services.

Broader industry response and policy stakes

In May, the Federal Reserve sought public feedback on a proposal to establish a new type of payment account that could allow certain crypto companies to access the central bank's clearing and settlement systems. Under the proposal, eligible account holders could use payment services with automated safeguards, but would not receive intraday credit, discount window access or interest payments on balances held at the Fed.

Anchorage says the lack of FedACH access is especially problematic because it would force payment account holders to keep depending on intermediaries for routine payment and settlement activity. The Blockchain Association takes a similar view, saying the proposed accounts may be a positive step but are not a substitute for master accounts, and that the absence of FedACH access and zero interest on balances would make them commercially impractical.

Other responses highlight a split in the debate. Senator Cynthia Lummis says she looks forward to the Fed finalizing the rules as soon as possible, while the Financial Services Forum, The Clearing House Association and the Bank Policy Institute warn that some institutions could gain access while remaining subject to less rigorous supervision and regulation, raising concerns over financial stability, national security and credit availability.

Our earlier report on the unusually uncertain Federal Reserve rate decision explained how markets were pricing a non-consensus chance of a surprise hike under Chair Kevin Warsh. We highlighted how Fed funds futures and options activity in long-dated Treasuries and gold were being watched as key indicators of positioning around a potentially market-moving policy outcome.

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