US-based blockchain company Ripple has made significant strides in the stablecoin market, with its RLUSD stablecoin now coming to the fore in fresh policy discussions around direct access to central bank payment systems. Asheesh Birla, CEO of Ripple Treasury Evernorth, commented in Washington that proposed policy changes—especially the Federal Reserve’s “skinny master account” model—could fundamentally transform the movement of digital dollars.
New Federal Reserve Model: Direct Stablecoin Access on the Table
Currently, US dollar transactions within the American payment infrastructure are typically executed solely through banks. Non-bank fintech firms and payment applications have no choice but to route transactions via traditional banking channels. The Federal Reserve’s “skinny master account” proposal, however, would allow select stablecoin issuers to plug directly, though with restricted privileges, into the Fed’s payment systems. These accounts would offer fewer facilities than full bank accounts and not confer comprehensive banking rights.
Under the proposal, payment stablecoin issuers could carry out instant dollar transactions on fast payment rails like FedNow and Fedwire. This would reduce dependence on sponsor banks and shorten the often lengthy reconciliation chains between stablecoins and bank accounts.
RLUSD’s Market Position and Rapid Growth
Skinny master accounts would not pay interest, allow credit extensions, or provide access to the Fed’s emergency lending. For stablecoin issuers, this model could reduce the operational risks that come from holding reserves at commercial banks. It would also make transfers from stablecoins to traditional bank accounts faster and more secure.
In a parallel development, the GENIUS Act, establishing a federal framework for payment stablecoins, has come into force. This law mandates one-to-one backing of permitted stablecoin issuers with high-quality, liquid assets, and strict compliance with anti-money laundering requirements.
According to Ripple executive Asheesh Birla, since RLUSD was launched through a regulated trust structure in New York, it aligns well with the proposed skinny master account model, placing it in an advantageous position regarding potential legal compliance.
RLUSD, debuted in December 2024, has already shown remarkable growth, with its market capitalization approaching $1.6 billion. The stablecoin has seen widespread integration, from cryptocurrency trading to tokenization and institutional settlements.
Institutional Usage and Regulatory Alignment
Ripple has positioned RLUSD primarily for inter-institutional settlements, trade, and tokenized asset markets. The stablecoin is available for trading in more than 280 spot trading pairs on the OKX exchange, where it can also be used in select transaction-collateral processes.
Further, RLUSD has been linked to BlackRock’s BUIDL tokenized fund through a Securitize integration, enabling investors to buy and sell fund shares directly on the blockchain using RLUSD.
Should RLUSD’s connection with the Federal Reserve be approved in the future, dollar transactions will remain overseen by the central bank, with XRP serving as a rapid on-chain value transfer channel.
Ripple has submitted applications both for a national trust bank license in the US and for access to accounts tied to the Federal Reserve system. The aim is to fully align its operations with regulated financial infrastructure.
At the same time, Mastercard, Ripple, WebBank, and Gemini are pioneering a project to settle Gemini Credit Card transactions in RLUSD on the XRP Ledger. Mastercard officials regard digital assets as an alternative settlement currency in conventional payment networks.
Potential changes to central bank account structures may also affect closed-wallet providers like PayPal. Should direct access be granted to stablecoin issuers, digital dollar networks could become stronger competitors to existing app-based payment platforms.
Still, the policy process must run its course. For stablecoin projects to connect to Fed infrastructure, clear federal licensing, collateralization, compliance, and supervisory requirements need to be fully addressed.
