Coinbase Moves Closer to Direct Fed Payment Access

Coinbase filed with the Federal Reserve on a proposed non-bank payment account framework for potential direct Fed settlement access.

Coinbase has taken a formal step toward potential direct access to U.S. Federal Reserve payment systems.

The crypto exchange submitted a response to the Federal Reserve’s proposed “Reserve Bank Payment Account” framework. The proposal could allow certain non-bank institutions to connect directly to core Fed settlement rails.

Coinbase Responds to Federal Reserve Framework

Coinbase filed an official response to the Federal Reserve’s request for information. The framework under review explores special-purpose Reserve Bank payment accounts.

These accounts could extend access beyond traditional regulated banks.

At present, only regulated depository institutions can access systems such as Fedwire and FedNow.

Non-bank firms must rely on intermediary banks for settlement services. Coinbase’s filing signals interest in a model that may change that structure.

In its response, Coinbase welcomed the opportunity to comment on the framework.

The company expressed support for connectivity between Federal Reserve payment services and emerging financial platforms.

Direct Fed Access Would Reshape Payment Infrastructure

If adopted, the proposed model could allow eligible non-bank firms to hold accounts at a Reserve Bank.

This would enable direct settlement without relying on correspondent banks. The shift would alter long-standing access rules within the U.S. payment system.

Today, most fintech and crypto firms depend on banking partners for clearing and settlement.

That structure adds operational layers and liquidity considerations. Direct access could reduce those dependencies for qualifying institutions.

The Federal Reserve has not approved the framework. The request for information indicates that regulators are still evaluating options.

Any change would likely involve defined eligibility standards and oversight conditions.

Related Reading: Coinbase CEO Confident a Crypto Market Framework Can Benefit Everyone

Broader Effects for Crypto and Fintech Firms

The proposal could narrow the operational gap between banks and regulated digital asset platforms.

Direct settlement access may improve fiat on-ramps and off-ramps for crypto exchanges. It could also streamline treasury management processes.

Companies such as Ripple have previously explored trust bank structures. If the framework advances, similar firms could examine eligibility pathways.

However, no final decisions have been announced. For Coinbase, the filing represents regulatory engagement rather than immediate operational change.

The Federal Reserve continues to review feedback from industry participants.

The outcome will determine whether non-bank payment account access becomes part of future U.S. financial infrastructure.

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