Ripple Labs has submitted a detailed response to the U.S. Federal Reserve‘s request for input on a new payment account prototype. This initiative, outlined in Docket OP-1877, aims to enhance the efficiency and security of the nation’s financial infrastructure by allowing select non-bank entities, such as stablecoin providers, to maintain accounts directly with the central bank.
By bypassing traditional commercial banks, the prototype seeks to streamline transactions, minimize costs, and bolster overall system resilience in an increasingly digital economy.
The Federal Reserve‘s proposal comes at a time when blockchain technology and digital assets are reshaping global finance.
Currently, non-banks must rely on intermediary banks for access to federal payment rails, which introduces delays, additional fees, and potential vulnerabilities if the intermediary faces issues.
The new “Payment Account” (PA) model would provide regulated fintech firms with limited, direct access to Fed services, fostering innovation while maintaining oversight.
This shift could particularly benefit stablecoins like Ripple’s RLUSD, enabling reserves to be held securely at the Fed and reducing counterparty risks associated with commercial banking partners.
Ripple’s comment letter, dated February 6, 2026, draws on the company’s extensive experience in blockchain-based payments and cross-border settlements to offer practical enhancements.
As a leader in enterprise blockchain since 2012, with over 75 global financial licenses and its own payment platform, Ripple emphasizes the need for a balanced approach that promotes safety without stifling growth.
They propose four key upgrades to make the PA prototype viable: First, introduce limited access to the Fed’s discount window.
Ripple just dropped a comment letter to the Federal Reserve (Docket OP-1877) proposing a “Reserve Bank Payment Account” prototype.
This is ONLY a proposal/prototype concept that would let qualified non-banks (like Ripple) hold stablecoin reserves directly at the Fed potentially… https://t.co/IkP1XpcjOC pic.twitter.com/l4t0MwCr4a
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) February 11, 2026
This would act as an emergency mechanism, allowing account holders to borrow against high-quality collateral like U.S. Treasuries during market stress, preventing forced asset sales that could exacerbate crises.
Second, offer competitive interest rates on PA balances.
Without this, firms might park funds in riskier commercial banks to earn yields, undermining the goal of centralizing reserves at the Fed for maximum safety and transparency.
Third, replace the proposed $500 million static cap on account sizes with a flexible, proportional limit—such as 10% of the entity’s total assets.
This accommodates high-volume operations in global payments, ensuring the system scales without pushing funds into less regulated channels.
Fourth, incorporate pre-funded ACH capabilities.
Excluding this essential service for everyday transactions like payroll and bill payments would create inefficiencies; pre-funding eliminates credit risks while enabling seamless integration.
These recommendations underscore Ripple’s focus on stability and fairness.
By design, the PA would not extend full federal protections like deposit insurance, preserving distinctions between banks and fintechs.
Instead, it serves as a bridge, integrating traditional finance with digital innovations to spur competition and consumer benefits.
If adopted, this framework could solidify the U.S. dollar’s dominance in the digital era, setting a benchmark for central banks worldwide.
For XRP holders and the broader crypto community, it highlights Ripple’s role in bridging assets, potentially elevating XRP as a key intermediary in institutional settlements.
While still in the early proposal stage with no approvals yet, this dialogue signals a maturing partnership between regulators and innovators.