Fed’s ‘Skinny Master Account’ Proposal Could Benefit Ripple’s RLUSD and XRP Integration

Core Insights - The Federal Reserve's proposal for a "skinny master account" could significantly benefit Ripple by allowing fintechs and crypto-focused banks direct access to the US financial system [1][2] Group 1: Federal Reserve Proposal - The "skinny master account" will enable legally eligible firms, including fintechs and blockchain companies, to connect directly to the Fed's payment rails, facilitating real-time settlement without relying on partner banks [1][2] - Currently, only chartered banks have direct access to the Fed's payment rails, which are essential for instant money movement between financial institutions [2] Group 2: Ripple's Position - Ripple has applied for a Fed master account earlier this year, viewing the "skinny" version as a major breakthrough in bridging blockchain settlements with traditional financial infrastructure [3] - The "skinny master account" will not provide privileges like borrowing from the Fed or earning interest on reserves, but it will offer critical payment capabilities similar to those used by commercial banks for domestic transfers [4][3] Group 3: Institutional Expansion - Ripple is expanding its institutional operations, highlighted by a recent $1 billion acquisition of GTreasury, which serves over 1,000 enterprise clients [5] - This acquisition positions Ripple to integrate blockchain liquidity solutions within corporate treasury systems, enhancing its regulatory access to payment infrastructure [5] - Additionally, Ripple has backed Evernorth, a newly listed entity aiming to raise over $1 billion to utilize XRP as an institutional liquidity asset [6]