President Trump signed an executive order directing the Federal Reserve and US financial regulators to review whether fintech and crypto firms should access core payment infrastructure, a move that directly advances Ripple’s multi-year push for a Fed master account to back its RLUSD stablecoin. The order gives the Fed 120 days to submit findings and recommendations on integrating digital assets into traditional payment systems, formalizing a regulatory question that has blocked firms like Ripple, Anchorage Digital, and Wise from accessing sovereign payment rails directly.
Ripple’s Parallel Path to Payment Infrastructure
Ripple has pursued dual regulatory strategies to secure Fed access. In July 2025, CEO Brad Garlinghouse announced the company applied for a US national bank charter alongside its master account application. By December, the Office of the Comptroller of the Currency conditionally approved Ripple National Trust Bank, a federally supervised trust entity. Simultaneously, the Fed proposed a “payment account” prototype in response to industry pressure, offering a middle ground between full master accounts and complete exclusion from sovereign payment systems. Stu Alderoty, Ripple’s Chief Legal Officer, characterized the Fed’s “skinny” account concept as attractive despite its restrictions.
Kraken’s Precedent and Its Limits
Kraken Financial became the first crypto firm to receive a Fed master account in March 2025, after more than five years of regulatory engagement. However, the approval came with significant constraints: access to Fedwire but no overnight balances, no interest-bearing deposits, no emergency lending facilities, no FedNow service, and no ACH connectivity. These restrictions suggest the Fed’s cautious approach to crypto infrastructure access. Ripple’s stablecoin strategy likely requires broader capabilities than Kraken’s limited-purpose account permits, making Trump’s executive order potentially consequential for clarifying regulatory expectations.
Legal Precedent vs. Executive Pressure
Trump’s order does not grant Ripple immediate access—it mandates Fed review within 120 days. The political push faces entrenched legal precedent. Custodia Bank’s 2023 master account denial, upheld in subsequent appeals court decisions through 2025-2026, affirmed that Reserve Banks retain discretion to reject applications. The Fed’s proposed “payment account” framework may represent the regulatory ceiling rather than a stepping stone to full master account parity. Whether Trump’s directive overrides Reserve Banks’ established autonomy remains unresolved.
What Happens Next
The Fed must deliver recommendations by the 120-day deadline. Ripple’s conditional national bank charter approval awaits full OCC confirmation, and the company’s master account application sits in regulatory limbo. The executive order shifts the policy conversation from whether crypto firms deserve access to how that access should be structured. For Ripple and the broader stablecoin sector, the outcome determines whether RLUSD reserves can settle directly on Fed payment systems or remain dependent on traditional bank intermediaries.
