Access to the Federal Reserve’s payment rails has long been coveted by FinTechs and non-traditional financial institutions seeking a direct link into the heart of the U.S. banking system. A “master account” at one of the twelve regional Reserve Banks allows an institution to hold reserves and settle payments without relying on an intermediary bank. The account is tantamount to a gateway that promises faster settlement and lower costs for firms offering new payments products. But that ga...
