Investors in Reserve Trust Company included QED Investors with participation from FinTech Collective and Ardent Venture Partners and Flywire CEO Mike Massaro. Being listed on the front page of its website, the Reserve Trust’s exclusive master account at the Federal Reserve remains the company’s single largest selling point to potential customers. Raksin sold her financial stake upon her 2019 departure from the company for about US$ 1.5 million. Before that role, she spent more than three years at the Federal Reserve as one of its governors. Department of Treasury as deputy secretary. Raskin received stock in Reserve Trust when she joined its board in May 2017. This statutory authority has it so master accounts are available only to banks that are members of the Federal Reserve System and other depository institutions, and only if they satisfy any additional criteria established by the particular Federal Reserve Bank.īased out of Greenwood Village, Colorado, The Reserve Trust Company is a fintech company that received a Federal Reserve master account while Sarah Bloom Raskin served on its board. A Master Account is identified by a Primary nine-digit Routing Transit Number (RTN).” This account allows the account owner to move dollars on behalf of its customers directly, via wire and ACH payment without an intermediate or partner bank.Īccording to the Federal Reserve, “A Master Account is the record of financial rights and obligations of an Account Holder and the Administrative Reserve Bank (or any other Reserve Bank maintaining a Master Account identified in Operating Circular 1) with respect to each other, where opening, intraday and closing balances are determined. Section 13 of the Federal Reserve Act states that “Any Federal Reserve Bank may receive from any of its member banks, or other depository institutions.” A master account at one of the twelve Federal Reserve Banks is necessary for an institution to have direct access to the Federal Reserve’s payment systems and to settle transactions with other participants in central bank money. Controversy is arising on how a small Denver-based payments company got a Federal Reserve Master Account. payments industry is flushed with big money investors and rife with profitable firms like Square, Paypal, Venmo, and Stripe. How Did a Small Denver-Based Payments Company Get a Federal Reserve Master Account?
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