Crypto Banks Are Getting a Chance to Get Into the Central Banking System

A three-tiered system is being introduced to help financial institutions.

Crypto Banks Are Getting a Chance to Get Into the Central Banking System

On Monday, the U.S. Federal Reserve announced its final decision on who can access its 'master accounts'. Among else, the announcement will provide access to these accounts to several crypto companies.

Lael Brainard, Fed Vice Chair, said:

"The new guidelines provide a consistent and transparent process to evaluate requests for Federal Reserve accounts and access to payment services in order to support a safe, inclusive, and innovative payment system."

The guidance will consist of multiple tiers with different levels of stringency, so as to make it easier for individuals and companies to deal with, depending on what they need. Tier 1 will be federally insured and tier 2 will not be federally insured but will still be "subject to prudential supervision by a federal banking agency." Tier 3 will not be federally insured or subject to any federal banking agencies.

The document further stipulates:

"Many commenters [...] recommended that the Proposed Guidelines should provide a more challenging path for institutions with novel charters to gain access to accounts and services. Many of these commenters argued that the Proposed Guidelines should subject non-federally insured institutions to the same types of requirements as apply to federally insured depository institutions, regardless of the institution’s business model."

Among those crypto companies and exchanges who are now one step closer to acquiring this kind of account belong Custodia, or even the well-established Kraken. This new agreement could help integrate cryptocurrencies into the everyday lives of common Americans.

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