{"id":54260,"date":"2025-10-22T16:49:01","date_gmt":"2025-10-22T16:49:01","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=54260"},"modified":"2025-10-22T16:49:01","modified_gmt":"2025-10-22T16:49:01","slug":"this-fed-proposal-could-push-defi-tvl-10x-to-over-1t-in-15-months","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=54260","title":{"rendered":"This Fed Proposal Could Push DeFi TVL 10X To Over $1T In 15 Months"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">When DeFi TVL broke $1Bn in 2020, even Arthur Hayes, the co-founder of BitMEX, couldn\u2019t help but celebrate. And rightly so. It was a milestone for a crypto subsector still taking baby steps in a finance world that is unforgiving of innovation challenging the status quo.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Five years later, not only is Wall Street looking the crypto way, but the President of the United States thinks the future is crypto and smart contracts. Donald Trump is behind World Financial Liberty, and some of his meme coins are trading on top exchanges, including Binance.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">While regulations play a critical role in explaining the pump, a proper bridge between tradFi and DeFi will be massive, mainly for stablecoin issuers. Tether, Paxos, and Circle are already the big winners, minting hundreds of billions of USD-backed tokens on Solana, Ethereum, and multiple other chains, including Tron.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-299768 size-full\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-22T151041.375.png\" alt=\"Governor Waller is proposing the creation of a skinny master account for fintechs. Stablecoin and DeFi TVLs may explode to over $1T by 2026\" width=\"1374\" height=\"737\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-22T151041.375.png 1374w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-22T151041.375-300x161.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-22T151041.375-1024x549.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-22T151041.375-768x412.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-22T151041.375-50x27.png 50w\" sizes=\"auto, (max-width: 1374px) 100vw, 1374px\"><\/p>\n<p><span data-preserver-spaces=\"true\">(Source: <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.coingecko.com\/en\/categories\/stablecoins\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">Coingecko<\/span><\/a><span data-preserver-spaces=\"true\">)<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER: <\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-100x-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">10+ Next Crypto to 100X In 2025<\/span><\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">Skinny Master Accounts For Stablecoin Issuers?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Yesterday, positive steps were taken that will be game-changers for stablecoin issuers. During the inaugural <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.federalreserve.gov\/conferences\/payments-innovation-conference.htm\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">Payments Innovation Conference<\/span><\/a><span data-preserver-spaces=\"true\">, held on October 21, Governor Waller, a Federal Reserve board member, proposed the issuance of skinny master accounts for fintech players, including stablecoin issuers.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\"><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/16.0.1\/72x72\/1f6a8.png\" alt=\"\ud83d\udea8\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\">BIG NEWS out of the <a href=\"https:\/\/twitter.com\/federalreserve?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">@federalreserve<\/a> Payments Innovation Conference this morning.<\/p>\n<p>Governor Chris Waller announced the central bank is proposing a new type of limited-access master account (or what he calls a \u201cskinny master account\u201d) for ALL legally eligible institutions to\u2026 <a href=\"https:\/\/t.co\/lZh0I0Tj3a\" rel=\"nofollow\" target=\"_blank\">https:\/\/t.co\/lZh0I0Tj3a<\/a> <a href=\"https:\/\/t.co\/Wg7ygjpvJj\" rel=\"nofollow\" target=\"_blank\">pic.twitter.com\/Wg7ygjpvJj<\/a><\/p>\n<p>\u2014 Eleanor Terrett (@EleanorTerrett) <a href=\"https:\/\/twitter.com\/EleanorTerrett\/status\/1980642646268797004?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">October 21, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">Presently, stablecoin issuers like Circle and Tether depend on third-party banks regulated by the Federal Reserve and with access to master accounts. Through these banks, stablecoin issuers can issue stablecoins from cash deposited by clients.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, there is a problem: Their dependency only means more friction. Costs are higher, as banks charge for every transfer. Again, there are settlement risks as some processes might take days, not seconds. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Additionally, if the sponsor bank goes bankrupt, the stablecoin issuer has to deal with counterparty risks. In March 2023, USDC briefly depegged following the bankruptcy of Silicon Valley Bank (SVB).<\/span><\/p>\n<p><iframe loading=\"lazy\" title=\"How the SVB collapse affected the $135 billion stablecoin market\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/acUPxuSRkwc?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><span data-preserver-spaces=\"true\">Reliance on a third-party bank stifles innovation and slows adoption. For this reason, Governor Waller\u2019s proposal of a skinny master account for fintechs, including stablecoin issuers, will be a move in the right direction.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">While it will have limited access for eligible and non-traditional institutions, it offers direct connectivity to the Federal Reserve\u2019s core payment rails, powering basic services like fund transfers and reserve holdings. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This translates to faster and cheaper operations for stablecoin issuers. Most importantly, Circle and top stablecoin issuers in the United States will benefit from enhanced liquidity and stability since they can hold their reserves more securely at the Fed, minimizing bank runs and counterparty risks, as seen with the SVB collapse.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER: <\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/new-binance-listings\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">16+ New and Upcoming Binance Listings in 2025<\/span><\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">Will DeFi TVL Hit $1T in 2026?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">As of October 22, all DeFi protocols manage nearly $149Bn. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Ethereum is still the king of DeFi, but hundreds of millions are tied in Solana, Binance Smart Chain (BSC), and smart contract platforms, which power some of the <\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/best-crypto-to-buy\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">best cryptos to buy<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-299767 size-full\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-22T151413.409.png\" alt=\"Governor Waller is proposing the creation of a skinny master account for fintechs. Stablecoin and DeFi TVLs may explode to over $1T by 2026\" width=\"1660\" height=\"611\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-22T151413.409.png 1660w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-22T151413.409-300x110.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-22T151413.409-1024x377.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-22T151413.409-768x283.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-22T151413.409-1536x565.png 1536w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/10\/Screenshot-2025-10-22T151413.409-50x18.png 50w\" sizes=\"auto, (max-width: 1660px) 100vw, 1660px\"><\/p>\n<p><span data-preserver-spaces=\"true\">(Source: <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/defillama.com\/\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">DefiLlama<\/span><\/a><span data-preserver-spaces=\"true\">)<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Depending on how fast stablecoin issuers get access to these skinny master accounts, DeFi as a whole will likely expand rapidly in the coming few years, even breaking the $1T mark by the end of 2026.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This growth will be powered directly by the inflow of stablecoins into the broader DeFi ecosystems. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">With lower costs and cheaper processing, not only will USD stablecoins soar, also <\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-1000x-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">breaking the $1T during this time<\/span><\/a><span data-preserver-spaces=\"true\">, but global and institutional adoption will also spike.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Here, access by platforms like Uniswap, Ripple, or Custodia to Federal Reserve rails, all without full banking privileges, lowers barriers for regulated DeFi and fast-tracks the redirection of potential trillions from TradFi to crypto rails. <\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER: <\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/best-meme-coins\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">9+ Best Memecoin to Buy in 2025<\/span><\/a><\/strong><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h2 class=\"nnbtc-key-takeaways__title\">Fed Skinny Master Account, DeFi TVL To $1T?<\/h2>\n<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">DeFi is disruptive to TradFi<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span>    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">Governor Waller proposes a skinny master account for fintechs<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span>    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">Stablecoin issuers like Circle and Tether will be the top beneficiaries<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span>    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <span data-preserver-spaces=\"true\">Will DeFi TVL soar 10X to over $1T?<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span>    <\/li>\n<\/ul><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/altcoins\/this-fed-proposal-could-push-defi-tvl-10x-to-over-1t-in-15-months\/\">This Fed Proposal Could Push DeFi TVL 10X To Over $1T In 15 Months<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When DeFi TVL broke $1Bn in 2020, even Arthur Hayes, the co-founder of BitMEX, couldn\u2019t help but celebrate. And rightly so. It was a milestone for a crypto subsector still taking baby steps in a finance world that is unforgiving of innovation challenging the status quo. Five years later, not only is Wall Street looking [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-54260","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/54260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54260"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/54260\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}