{"id":57212,"date":"2025-11-07T07:01:33","date_gmt":"2025-11-07T07:01:33","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=57212"},"modified":"2025-11-07T07:01:33","modified_gmt":"2025-11-07T07:01:33","slug":"ripple-clo-sees-skinny-fed-account-as-solution-to-banking-concerns-touts-benefits","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=57212","title":{"rendered":"Ripple CLO Sees \u2018Skinny\u2019 Fed Account As Solution To Banking Concerns, Touts Benefits"},"content":{"rendered":"
\n

Blockchain payment company Ripple, expressed support for the concept of a \u201cskinny\u201d Federal Reserve (Fed) payments account tailored for non-banking entities <\/a>through its chief legal officer, Stuart Alderoty. This account could reportedly address concerns from traditional banks about financial stability and competitive risks.<\/p>\n

Ripple Seeks Fed Master Account<\/h2>\n

In an interview <\/a>with Reuters, Alderoty described the idea as \u201cattractive\u201d and suggested it could provide reassurance to conventional banks wary of increased competition from lightly-regulated non-banks.\u00a0<\/p>\n

Ripple had previously applied for a Fed master account back in July of this year, which would enable the company to connect directly to the US central bank\u2019s payment infrastructure, circumventing the need for intermediaries.<\/p>\n

The Federal Reserve has historically been cautious about granting access to its payment systems<\/a> to less-regulated entities, partly due to concerns from banks regarding potential risks to the financial system.\u00a0<\/p>\n

However, in a notable policy shift, Fed Governor Christopher Waller recently indicated that the central bank is considering a \u201cskinny\u201d master account.\u00a0<\/p>\n

This account would allow firms to access Fed payment services without offering other key benefits, such as interest payments, overdraft privileges, or access to emergency lending.<\/p>\n

Even with these limitations, a \u201cskinny\u201d account could still facilitate Ripple\u2019s ability to quickly convert reserves into its dollar-pegged stablecoin, RLUSD<\/a>. This direct access to the Fed\u2019s services would streamline transactions and reduce costs associated with relying on bank intermediaries.\u00a0<\/p>\n

Industry Leaders Weigh In<\/h2>\n

Alderoty emphasized the importance of redeemability, stating that having access to a master account would provide the most efficient and transparent means to manage US dollar assets and Treasuries.<\/p>\n

Waller clarified that the concept remains a prototype and is subject to change. He noted that the intended use of such accounts would be limited, aiming to avoid encroaching on the traditional banking sector\u2019s operations<\/a>.\u00a0<\/p>\n

Additionally, he mentioned that these \u201cskinny\u201d accounts could allow crypto institutions access to Fed payment rails on a \u201cstreamlined timeline,\u201d albeit without certain advantages like interest on account balances or overdraft options.\u00a0<\/p>\n

However, Wall Street veteran Caitlin Long, who is also founder and CEO of Custodia, a Wyoming-chartered crypto bank that has long sought a full-fledged master account, expressed caution on the idea of such concepts.\u00a0<\/p>\n

She pointed out that Waller\u2019s announcement specified that the Federal Reserve\u2019s new program would apply only to \u201clegally eligible entities,\u201d highlighting the importance of the details in the implementation.<\/p>\n

\"Ripple\"<\/p>\n

At the time of writing, the firm\u2019s associated cryptocurrency, XRP, was trading at $2.22, indicating significant losses in line with the broader crypto market\u2019s current downturn. Over the last 24 hours and seven days, the altcoin has lost 6% and 8% in value, respectively.\u00a0<\/p>\n

Featured image from DALL-E, chart from TradingView.com\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Blockchain payment company Ripple, expressed support for the concept of a \u201cskinny\u201d Federal Reserve (Fed) payments account tailored for non-banking entities through its chief legal officer, Stuart Alderoty. This account could reportedly address concerns from traditional banks about financial stability and competitive risks. Ripple Seeks Fed Master Account In an interview with Reuters, Alderoty described […]<\/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-57212","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\/57212","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=57212"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/57212\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=57212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=57212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=57212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}