Blockchain payment company Ripple, through its chief legal officer Stuart Alderoty, has expressed strong support for the Federal Reserve's proposed "skinny" master account, a limited version tailored for non-banking entities. This account could address traditional banks' concerns about financial stability and competitive risks by providing restricted access to the Fed's payment infrastructure.
Ripple had previously applied for a full Fed master account in July 2025, seeking to connect directly to central bank services like FedNow and circumvent intermediaries. In an interview with Reuters, Alderoty described the skinny account as "attractive" and suggested it could reassure conventional banks wary of competition from lightly-regulated firms.
Fed Governor Christopher Waller recently indicated the central bank is considering this prototype, which would exclude benefits such as interest payments, overdraft privileges, or emergency lending access. Despite these limitations, it would enable Ripple to quickly convert reserves into its dollar-pegged stablecoin, RLUSD, streamlining transactions and reducing costs associated with bank intermediaries.
Alderoty emphasized that access to a master account would ensure "the most efficient and transparent means" to manage US dollar assets and Treasuries. Waller clarified the concept is subject to change and intended for limited use to avoid encroaching on traditional banking. However, banking sector pushback persists due to fears over financial stability and lost fee income.
Other crypto firms, including Anchorage Digital Bank and Paxos Trust Company, have also applied for Fed master accounts. The Fed is currently studying the proposal, with no immediate rollout expected. At the time of reporting, Ripple's associated cryptocurrency XRP was trading at $2.22, reflecting a 6% drop in 24 hours and an 8% decline over seven days amid broader market downturns.
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