Ripple Backs the Fed’s “Skinny Account” Plan

Ripple wants to become one of the first crypto companies to obtain a banking license that would allow it to connect directly to the U.S. Federal Reserve. Such a move could significantly accelerate the development and adoption of the XRP Ledger (XRPL), as it would let the company operate “at the source” — without relying on intermediaries in the traditional financial system.

At present, the Federal Reserve offers only one type of account — the so-called master account, used by banks and financial institutions to settle transactions in central bank money. However, the Fed is now considering introducing a new type of account, referred to as a “skinny account.” This would be a simplified version of the master account, lacking some features such as access to emergency credit lines or interest on reserves.

In an interview with Reuters, Ripple’s Chief Legal Officer, Stuart Alderoty, said that even a “skinny account” would be an appealing option for the company. He added that such a model could also help build more confidence and trust between traditional banks and crypto-sector institutions.

Regardless of whether Ripple ultimately secures a full or skinny account, one thing is certain — the company continues to pursue its long-term vision of building what it calls the “Internet of Value.” By connecting directly to the Federal Reserve, Ripple could become a key bridge between the world of traditional finance and the blockchain technology that powers XRPL.