Federal Reserve Issues Guidance for Providing FinTech and Crypto Firms with "Master Deposit Account" Access

Jinjin Finance reported that on August 15 local time, the Federal Reserve announced that it had finalized the provision of access to master deposit accounts (Master Accounts) for new financial institutions. new guidelines. Master Accounts are a critical link in the U.S. (and international) financial chain; without them, financial service providers would rely on intermediary banks that own them, reports say, and the new guidelines effectively standardize the application for master accounts for companies with a "new trust license" Access considerations, such as crypto custodian banks and their industry associations.

The guidance is broadly similar to guidance first proposed in 2021 and would create a multi-tiered system that would allow the Fed to tailor its evaluation process to grant access based on the type of financial institution applying. Each tier corresponds to a more stringent review process. According to the guidance, Tier 1 banks would be federally insured; Tier 2 banks would not be federally insured but would remain "subject to prudential supervision by the federal banking agencies"; and Tier 3 would be "not federally insured and not subject to prudential supervision by the federal banking agencies." , which is likely to apply to crypto banks in Wyoming.

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