Core Insights - Ripple supports the concept of a "skinny" Federal Reserve payments account for non-banks, which could alleviate banks' concerns regarding financial stability and competition risks [1][5] - The company has applied for a Fed "master account" to directly access the U.S. central bank's payments infrastructure, avoiding reliance on intermediaries [2] - Fed Governor Christopher Waller indicated that the central bank is considering a "skinny" master account that would limit access to certain services, addressing some concerns from traditional banks [3][5] Group 1 - The "skinny" account would enable Ripple to efficiently redeem reserves for its dollar-pegged stablecoin RLUSD, enhancing transaction speed and reducing costs [4] - The account would provide limited access to Fed payments without infringing on traditional banks' broader business operations [5] - The response from banks regarding the "skinny" Fed master account remains uncertain, particularly concerning their concerns about non-banks accessing critical financial infrastructure [5]

By Hannah Lang (Reuters) -Crypto giant Ripple supports the idea of a "skinny" Federal Reserve payments account for non-banks, which could still ​be a game changer while addressing banks' concerns over financial stability and competition risks,‌ a top company executive said. "I think it's an attractive idea, and I think it should give traditional ‌banks some comfort," Stu Alderoty, the chief legal officer of Ripple, said in an interview with Reuters on Tuesday. Ripple in July said it had applied for a Fe ...