Ripple Treasury Evernorth CEO Asheesh Birla has said a policy shift in Washington around stablecoins and “skinny master accounts” could change how digital dollars move through the U.S. payment system, with Ripple’s RLUSD potentially positioned as a settlement asset if the proposal advances.
According to the X post, Birla said a Federal Reserve master account sits at the top of the U.S. payment infrastructure because it allows direct dollar settlement at the central bank. Today, access is generally limited to banks, which means payment apps and fintech firms must route transactions through banking partners.
The proposed “skinny” master account model would give certain federally chartered stablecoin issuers a limited form of direct access to Fed payment rails. These accounts would be narrower than traditional master accounts and would not include full banking privileges.
Skinny Master Accounts Could Shift Stablecoin Settlement
The proposal would allow eligible payment stablecoin issuers to settle dollars more directly through systems such as FedNow and Fedwire. Supporters say this could reduce reliance on sponsor banks and shorten settlement chains between stablecoin networks and bank accounts.
The accounts are expected to carry restrictions. They would not earn interest, allow overdrafts, or provide access to emergency lending through the Fed’s discount window.
For stablecoin issuers, direct access to central bank settlement could reduce operational risk tied to commercial bank reserves. It could also make redemption and movement between stablecoins and bank accounts faster.
The policy discussion is developing alongside the GENIUS Act, which created a federal framework for payment stablecoins. The law requires permitted issuers to hold one-to-one reserves in high-quality liquid assets and comply with anti-money laundering rules.
RLUSD Fits Regulated Stablecoin Debate
Birla said Ripple’s RLUSD could fit the direction of the policy debate because it is issued through Ripple’s New York-regulated trust structure. He said that the profile is close to what a skinny master account proposal may contemplate.
RLUSD has expanded rapidly since launching in December 2024, with its market capitalization moving toward $1.6 billion. The stablecoin has also been integrated across trading, settlement, and tokenization use cases.
As we reported recently, Ripple has been positioning RLUSD for institutional settlement, trading, and tokenized asset markets. The stablecoin is available on OKX across more than 280 spot trading pairs and can be used in selected trading and collateral workflows.
RLUSD is also being used in tokenization and settlement settings. The stablecoin has been integrated with Securitize for BlackRock’s BUIDL tokenized fund, allowing investors to exchange fund shares for RLUSD on-chain.
XRP Could Serve as Movement Rail
Birla said that if RLUSD qualifies for future Fed access, dollar settlement would still happen at the Federal Reserve. XRP, however, could function as a movement rail for dollar value inside the broader payment stack.
Subsequently, the Ripple stablecoin RLUSD would represent the dollar stablecoin, while XRP could support transfer activity across blockchain rails, especially where fast movement and liquidity are needed.
Ripple has also taken steps to align its operations with regulatory expectations. The company received conditional approval for a national trust bank charter and has applied for access to Federal Reserve accounts through affiliated entities. These efforts are part of a broader strategy to position its infrastructure within regulated financial systems
Concurrently, Mastercard, Ripple, WebBank, and Gemini have been working on a pilot to settle Gemini Credit Card flows in RLUSD on the XRP Ledger. Mastercard executives have described stablecoins as another settlement currency within global payment networks.
The possible Fed account model could also affect closed wallet providers such as PayPal. If stablecoin issuers gain direct access to Fed settlement, open digital dollar networks could compete more directly with app-based payment systems that rely on internal balances and banking intermediaries.
However, the policy path remains unfinished. Stablecoin issuers would still need to meet federal chartering, reserve, compliance, and supervisory requirements before gaining any direct Fed account access.
