Blockchain Payment Consortium Backs Fed Payment Account Prototype

The Blockchain Payment Consortium ("BPC") supported the Federal Reserve’s initiative to provide direct "payment account" access to certain non-bank financial firms. The Consortium also urged regulators to expand service capabilities and raise balance limits to ensure a level playing field.

In a comment letter responding to the Fed's Request for Information and Comment, the BPC argued that the proposed accounts would provide a "viable alternative" to commercial bank intermediaries, allowing stablecoin issuers to settle in safe assets and avoid the volatility caused by bank "mismanagement" seen during the 2023 regional banking crisis. The BPC asserted that commercial banks "lack [the] incentives" to act honestly in a market involving the stablecoin economy.

The BPC claimed that blockchain-native firms offer "superior [anti-money laundering] visibility compared to traditional banks [due to] on-chain transparency." The association urged the Fed to focus on outcomes by integrating "real-time [blockchain] analytics" and monitoring rather than relying solely on static reporting methods. The BPC noted that direct access would facilitate instant payouts for small business owners.

The BPC cautioned that the proposed services in the prototype were too "narrow," warning that denying access to Fedwire Securities would force stablecoin issuers—who are major buyers of U.S. Treasuries—to rely on third parties, thereby reintroducing settlement risks. The BPC also criticized the proposed overnight balance limits for underestimating the scale of the digital asset market, suggesting that regulators raise the limit to 30–40%, so businesses can manage liquidity without holding the majority of reserves in the traditional banking system.