*Source: https://m.g-enews.com/article/Global-Biz/2025/10/202510241036368660906806b77b_1#_PA

● Fed Considers Crypto Revolution, Stablecoins Transform Payments

Fed FOMC Considers Including Cryptocurrency in Payment Systems — Stablecoins and Skinny Master Accounts Reshape the Financial Landscape

News that the Fed has considered connecting cryptocurrency, mediated by stablecoins, to its payment systems.Discussion on introducing the skinny master account, with immediate reactions from cryptocurrencies like Bitcoin, Ethereum, Ripple, and related stocks.The body of the text organizes the Fed’s announcement, the market’s immediate response, institutional and technical implications, and the impact on investments and financial systems by category.A separate analysis provides insights on the “practical impact on the Fed’s operations, monetary policy, and banking structure,” a key point not well covered in other reports.Main SEO keywords: Fed, cryptocurrency, stablecoins, Bitcoin, payment systems

Key News Summary

The Fed FOMC is reviewing a plan to connect innovative companies such as stablecoin issuers to the payment system in a limited manner.The idea is to provide access to Fed accounts in the form of a Skinny Master Account, while imposing risk control mechanisms.It is reported that Fed Governor Christopher Waller made related remarks at the Payments Innovation Conference.The cryptocurrency market and related stocks reacted instantly, increasing volatility.The article also explains the contrasting price movements of gold, which surged, against Bitcoin.

Analysis by Category — Institutional Implications

• Concept and Significance of the Skinny Master Account.The Skinny Master Account is a restricted form of granting access to Fed accounts.Unlike traditional master accounts, it imposes constraints to control risk.This concept opens up the possibility of direct connection between the Fed’s payment network and stablecoin issuers or digital asset infrastructures.

• Direction of Regulatory and Policy Changes.This discussion indicates that the Fed is leaning towards ‘accepting’ cryptocurrency.Since the Trump administration, regulatory stances favoring cryptocurrencies have generally strengthened, influencing financial authorities’ attitudes.However, acceptance does not immediately mean full-scale adoption, and it is highly likely that AML, KYC, capital requirements, and operational risk regulations will be implemented concurrently.

• Reorganization of Roles for Banks and Financial Institutions.If stablecoin issuers directly secure settlement and liquidity services through the Fed’s payment network, existing banks’ roles in payment fees and intermediation are reduced.This could impose long-term pressure on banks’ interest margins and income structures.However, from a financial stability perspective, the Fed is likely to seek coordination and cooperation with banks.

Analysis by Category — Technical and Operational Impacts

• Technical Challenges of Payment Infrastructure Integration.To connect the Fed’s RTGS (Real-Time Gross Settlement) or Fedwire systems with stablecoin-based systems, a standardized interface (API) and real-time synchronization mechanisms are necessary.Interoperability between token standards (e.g., ERC-20 type) and central bank-level formats, and issues of payment finality need to be addressed.

• Security, Transaction Monitoring, and Privacy.As AML (Anti-Money Laundering) and CFT (Counter-Terrorism Financing) regulations are applied when connecting stablecoins, technical measures are essential.This requires achieving a balance of real-time transaction monitoring, distributed ledger auditing tools, and privacy protection.

• Coexistence with Central Bank Digital Currency (CBDC).The Fed’s actions do not necessarily exclude the issuance of a CBDC.If stablecoin integration is pursued first, future CBDC design may evolve to complement this approach.

Market Reaction and Investor Perspective

• Cryptocurrency Price and Related Stock Response.News of the Skinny Master Account caused Bitcoin, Ethereum, and Ripple, along with related stocks, to experience significant volatility.However, investors are acutely aware of short-term market reactions and paying attention to the timeline and regulatory conditions until actual institutionalization occurs.

• ETF, Institutional Demand, and Bitcoin Versus Gold.Bitcoin maintains a certain level of demand due to ETFs and corporate purchases, yet central bank direct purchases remain minimal.In contrast, central banks have increased their gold reserves in large quantities following geopolitical risks, strengthening their safe-haven asset holdings.Thus, Bitcoin’s ‘central bank demand’ is unlikely to materialize shortly, but payment network connection may act as a catalyst for accelerated institutional adoption.

International and Policy Implications

• Global Standardization Competition.If the US Fed incorporates stablecoins into its payment systems, it will significantly influence the formation of global norms.Other central banks may review similar approaches or design regulations aligning with US standards.

• Innovation in Foreign Exchange and Cross-Border Payments.The linking of tokenized assets and stablecoins could dramatically lower cross-border payment costs and time.However, differences in regulation, exchange rates, and capital control issues remain as obstacles.

Risk Checklist — Seven Practical Points to Consider

1) Legal basis concerning payment finality.2) Potential undermining of bank deposit franchise with direct account access through the Fed.3) Operational and liquidity risks of stablecoin issuers.4) Need for international harmonization of AML, KYC, and information-sharing systems.5) Strengthening technical interoperability and cybersecurity.6) Impact on market interest rates and short-term funding markets.7) Extent and nature of central bank responsibility and intervention during system failures.

The Most Important, Differentiated Content Not Covered in Other Reports (Exclusive Perspectives)

The Fed’s ‘review for introduction’ is more than just an experiment with payment infrastructure.If the Fed practically allows stablecoin firms access to accounts, it signifies a structural transformation of the bank-centric payment ecosystem.This implies that ownership of payment infrastructure and sources of revenue (such as intermediary fees and deposit interest) could be redistributed from banks to digital platforms and cryptocurrency issuers.In this process, the role of the Fed as a lender of last resort must be redefined.Ultimately, the transmission channel of central bank monetary policy (e.g., reserve manipulation → bank lending → real economy) could be weakened due to decentralized payment channels.This holds significant political and economic implications beyond the surface issues of reduced payment costs and improved speed.Thus, policy designers must simultaneously design ‘tiered regulations’ and ’emergency intervention mechanisms’ to preserve financial stability and the efficacy of monetary policy.

Practical Checkpoints for Investors and Businesses

• Investors in Crypto and Digital Asset Companies.When regulatory frameworks change, reassess beneficiary stocks (such as stablecoin issuers, digital asset infrastructure, and custody firms).Prioritize checking the list of companies applying for Fed account access.

• Traditional Financial Institutions.Quickly establish a digital transition strategy for payment and settlement businesses.Strengthen partnerships (in technology and market distribution) related to stablecoin and tokenized assets.

• Regulatory and Risk Officers.Invest in automation of AML and KYC systems and real-time monitoring capabilities.Develop collaboration plans with central banks in emergencies.

Expected Timeline and Key Points to Watch

• Short Term (3–6 months).Internal Fed review, pilot design, and discussion of related draft regulations.Continued volatility in the cryptocurrency market due to news sensitivity.

• Medium Term (6–18 months).Pilot operation of Skinny Master Accounts, technical integration tests.Interface tests between banks and platforms and strengthening of regulatory compliance procedures.

• Long Term (18+ months).Once standardization and legalization processes are complete, structural reorganization of the financial payment ecosystem can be fully initiated.

Conclusion — Why This News is a ‘Game Changer’

The Fed’s consideration of integration into the payment system is more than a technical experiment—it has the potential to change the rules of financial order.If stablecoins and tokenized assets infuse into payment networks, payment costs and speed could be revolutionarily improved.However, as the transmission structure of monetary policy and core revenue sources for banks may be shaken, regulatory and operational risk management is critical.Investors, financial institutions, and regulators must swiftly develop strategic preparations at this early stage of change.

< Summary >

The Fed is considering the introduction of a ‘Skinny Master Account’ to connect cryptocurrency based on stablecoins with the payment system.This signifies not only improvements in payment speed and cost but also structural changes in the roles of banks and central banks.Practical issues include technical interoperability, AML and KYC, and potential disruption of monetary policy transmission channels.Investors should monitor beneficiary companies and regulatory changes, and financial institutions should strengthen digital payment strategies and risk control capabilities.

[Related Articles…]

• Summary of Fed’s Payment Innovation and Impacts on Digital Currency
• Five Scenarios of How Regulatory Changes in Stablecoins Impact Financial Markets

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