How Crypto Firms Are Pushing to Skip the Bank Middleman

Most people never think about what happens when they tap "send" on their phone. The money doesn't magically appear in the recipient's bank—it travels through a hidden maze of bank accounts, reserve systems, and Federal Reserve tools that decide when payments actually finish. For crypto companies, this maze has always been a problem. They can't plug directly into the Fed's payment backbone like traditional banks do. Instead, they rely on commercial banks to act as middlemen for dollar settlements. When those middlemen—like Silvergate and Signature Bank—collapsed in 2023, crypto firms saw just how risky this system is. That failure lit a fire under the industry to push for direct access to the Fed’s tools. This week, two big things happened. First, in December 2025, the Fed asked the public how to set up a new kind of "payment account" for non-bank firms. It wouldn’t give them full bank powers—no interest on reserves, no emergency loans—but it would let them settle payments directly through Fed systems like Fedwire. Then, on May 19, President Trump signed an order telling the Fed to review its rules and speed up access for fintech and crypto firms. The order doesn’t force action, but it signals serious political support for change. Kraken Financial became the first crypto company to test this new path. In March, the Federal Reserve Bank of Kansas City gave its Wyoming-chartered subsidiary a limited-purpose master account. That means Kraken can now move dollars directly on Fedwire—the same system banks use to shuffle trillions daily. No more waiting for a bank to approve transfers. But there’s a catch: Kraken can’t borrow from the Fed in a pinch, and it doesn’t earn interest on its reserves. Still, for a company moving big volumes, cutting out the middleman is a game-changer.Other firms like Ripple and Circle are watching closely. Ripple, which runs the RLUSD stablecoin, and Circle, which manages USDC reserves, both want direct settlement access too. Their need for speed and control over dollar liquidity makes Fed access critical. Kraken’s experiment is now a test case: will the system work smoothly, or will risks pop up that no one planned for? But not everyone is happy. Big banks are pushing back hard, warning that direct access could weaken financial safety and make it easier to hide dirty money. Some Fed officials agree, saying the new accounts might lack strong enough checks. Critics also point out that if money flows too fast out of traditional banks into crypto platforms, it could make bank runs more likely. The banks aren’t just worried about risk—they’re worried about losing business. Right now, crypto firms pay banks to handle their dollar settlements. If they go direct, those fees disappear. The Fed’s plan tries to split the difference. New accounts are narrow, with no safety nets. They won’t turn crypto firms into banks. To qualify, companies still need to meet tough rules. Whether this balance holds is anyone’s guess. Kraken’s setup is a live experiment. The public can still comment on the Fed’s proposal. And Trump’s order adds pressure for faster action. For the first time, the debate over who controls dollar settlement isn’t just talk—it’s being put to the test.