On March 4, the Kansas City Fed announced that it has approved a limited purpose account for a Wyoming-chartered special purpose depository institution under its “Account Access Guidelines.” As previously covered by InfoBytes, Fed Governor Christopher Waller previewed this concept, which he referred to as a “skinny master account,” in October 2025, with the Fed subsequently issuing a proposal and requesting public comment thereon in December 2025 (covered here). According to the announcement, the Fed granted the account for an initial one-year term with restrictions tailored to the institution’s business model and risk profile to mitigate risks identified in the guidelines. The Fed stated that each account decision is based on a risk-based assessment of the applicant’s model and circumstances, applying uniform standards to ensure legal eligibility and support a safe, efficient payment system.

The company issued a press release, stating that the approval made it “the first digital asset bank in U.S. history” to obtain direct access to the Fed’s payment infrastructure, including connectivity to Fedwire without reliance on intermediary banks. The company stated that operating on a full-reserve basis allows for faster fiat settlement, reduced operational dependencies, and integration of “regulated fiat liquidity” into digital asset markets. The press release also noted that the company plans to initiate a phased rollout of capabilities, beginning with institutional client activity, and will coordinate closely with regulators as it expands payment functions over time.