There are other banking models that are needed. Look into Custodia Bank’s model (SPDI). Full reserve system meant to backstop high risk (but legal) businesses. They went through a multi-year lawsuit around the start of 2020 with the fed who didn’t want them to exist, ultimately lost.
Custodia Bank marks the second enterprise in this thread that attempted to gain direct access to the Fed, bypassing intermediate banks, but was rebuffed. The other was Reserve Trust.
Is it possible to obtain and make use of a Fed “Master account”?
