The Federal Reserve's new payment account consultation suggests that crypto companies may directly connect to the clearing system, but there is no intraday credit or discount window. Is the threshold high or low?

The Federal Reserve is seeking public comment on the establishment of a new type of payment account. Qualified institutions may directly connect to the clearing and settlement system to support innovation and reduce systemic risk, but the account will not provide intraday credit, a discount window, or reserve interest.

The new access will allow crypto companies to directly connect to the core payment rails and avoid intermediary banks; compared with last year’s version, the maximum end-of-day balance has been raised.

The measure stems from an executive order by Trump, emphasizing the assessment of how digital assets and traditional finance can be integrated. It also advises that, before the rules are finalized, each Federal Reserve Bank should temporarily defer decisions on granting third-party institutions access.