Federal Reserve Governor Christopher Waller opened the central bank's first Payments Innovation Conference on October 21, 2025, pledging to embrace crypto and DeFi disruptions. He proposed exploring a 'skinny' version of master accounts to give payments innovators direct access to Fed payment rails. The event in Washington, D.C., aimed to foster dialogue between traditional financial players and new entrants.
On October 21, 2025, at the Federal Reserve Board in Washington, D.C., Governor Christopher J. Waller delivered opening remarks at the inaugural Payments Innovation Conference. The event gathered around 100 private-sector innovators, including banks, asset managers, technology companies, and crypto-native fintechs, to discuss how technologies like stablecoins, tokenized assets, distributed ledger technology, and artificial intelligence are transforming payments.
Waller emphasized the Fed's commitment to supporting these changes. 'My view from the Fed from now on is embrace the disruption, don't avoid it,' he said. 'The Fed intends to be an active part of that revolution.' He highlighted the historical role of the Federal Reserve in facilitating efficient payments, from early clearing services to modern real-time infrastructures like Fedwire.
To aid innovators, Waller asked staff to explore a 'payment account,' described as a 'skinny' master account. This limited version would provide eligible institutions—those focused on payments but not needing full services—with basic access to Federal Reserve payment rails. It would address risks by excluding interest on balances, imposing balance caps, rejecting payments if balances hit zero (no daylight overdrafts), and barring access to discount window borrowing or certain high-risk services. The proposal targets firms currently relying on third-party banks with full master accounts, offering a streamlined review process to match the pace of innovation.
'I believe we can and should do more to support those actively transforming the payment system,' Waller stated. He noted the conference's goal of convening traditional incumbents and DeFi players, signaling a shift: 'This is a new era for the Federal Reserve in payments—the DeFi industry is not viewed with suspicion or scorn.' The Fed plans to engage stakeholders for input, with more details forthcoming.
Waller, a potential successor to Chair Jerome Powell, has previously praised DeFi at events like DC Fintech Week. The idea responds to calls from crypto firms, such as Ripple, seeking direct Fed access to integrate seamlessly into the U.S. financial system.