Federal Reserve Certifies 57 Organizations For Instant Payments System ‘FedNow’

Scott Matherson

1 year ago

2 mins read

Federal Reserve Building in Washington DC FedNow

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The United States Federal Reserve has made a significant announcement regarding the certification of 57 organizations, including financial institutions and service providers, for the highly anticipated launch of the FedNow Service.

With major players in the banking industry, such as JPMorgan Chase, Bank of New York Mellon, US Bancorp, and Wells Fargo, among the certified entities named by the Fed, the stage is set for a transformative shift in the financial landscape.

Testing And Certification Completion For FedNow

The Federal Reserve has disclosed that 57 early adopter organizations have successfully completed formal testing and certification for the upcoming FedNow Service launch planned for late July.

This diverse group consists of financial institutions and service providers that are ready to send and receive transactions, supporting settlement and processing on behalf of participants.

The US Department of the Treasury is also among the early adopters, reflecting the breadth of involvement in this groundbreaking initiative.

Readiness and Final Trial Runs

The certified organizations are currently undergoing final trial runs to confirm their readiness in handling live transactions over the new instant payments infrastructure.

This critical phase ensures that the participants can seamlessly embrace the capabilities of FedNow, providing enhanced payment experiences to their customers.

As part of this process, comprehensive testing and validation have been conducted to ensure compatibility, reliability, and optimal performance.

The FedNow Service is designed to be a platform for innovation, allowing financial institutions to adopt and build upon its capabilities over time. With the goal of offering new instant payment services to their customers, these institutions are expected to leverage FedNow for various use cases such as account-to-account transfers, requests for payment, bill payments, and more.

Crypto total market cap continues to recover | Source: Crypto Total Market Cap on TradingView.com

This forward-looking approach fosters a dynamic and evolving financial ecosystem, catering to the changing needs of businesses and individuals alike.

In addition to the early adopters, the Federal Reserve continues to collaborate with financial institutions planning to join the FedNow Service later in 2023 and beyond.

This ongoing effort aims to build a robust network that encompasses all 10,000 US financial institutions, ensuring nationwide reach and accessibility.

By facilitating participation from organizations of all sizes and geographical locations, the Federal Reserve paves the way for a comprehensive and inclusive instant payment ecosystem.

This instant payment system is set to revolutionize the US payment infrastructure, enabling individuals and businesses to make faster and more efficient transactions.

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Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

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