Federal Reserve proposes no interest on new payment accounts for non-banks
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Table of Contents
The Federal Reserve is proposing a rule that would pay zero interest on balances held in a new type of account called a Payment Account. This proposal is part of a broader effort to create an optional way for certain financial institutions, such as stablecoin issuers and money transmitters, to access Federal Reserve payment services without holding a full master account.
Why it matters: This matters because it sets the financial rules for how new types of payment providers interact with the U.S. banking system. If adopted, it will determine the cost of doing business for companies like stablecoin issuers and could influence how much they charge users or what returns they can offer on digital dollars. It is a foundational decision that shapes competition in the payments sector.
Who it affects
- Stablecoin issuers and other non-bank financial institutions seeking Fed payment services
This information is based on a proposed rule from the Federal Reserve System published in the Federal Register; readers should check the original document for full details before relying on it.
Agency: Federal Reserve System
Source: Federal Register — read the official document