It can be said without any penalty that the interest of the institutional investors within the crypto market has been suffering for the past few months. As the whole crypto market was in turmoil and there was no notion of the market catching a bullish wind, things are slowly getting back to normal, and that interest is also catching more and more fire with every passing day.
Many crypto banks have emerged on the horizon that are providing their customers with a chance to open master accounts for the sake of trading directly into the crypto market. The Fed has recently pumped out guidelines for these financial institutions.
Fed’s Payment System
A master account grants direct access to the Fed’s payment system, which then can be used for the sake of paying for cryptocurrencies, acquiring assets, and engaging in active trading.
Many crypto banks within the US have been stumbling here and there to gain access to these master accounts because any bank or individual that doesn’t have a master account would then have to team up with a firm or service that has access to a master account for the sake of engaging with active trade.
This will allow these crypto banks to have a direct relationship with conventional banks. These guidelines provided by Fed are not legally binding, which means that these are not preliminarily necessary to follow, but these do provide a clear-cut path to the crypto businesses seeking access to the master accounts.
The guidelines were focused on crypto trading and the intermediary partnership that will be struck between a crypto bank and a conventional bank. The only reference that could be found in the entire document pertaining to the crypto market was ‘cryptocurrency custody banks’.
But it is highly unlikely that the crypto firms would manage to get any coalition with the Fed’s master accounts because even for a simple crypto bank to gain access to the master accounts, it would have to go through a legal inquiry which is a hit and miss in the world of decentralization.