FedNow Processes XRP Transactions to Bank Accounts

Uphold, a well-known American cryptocurrency exchange, has confirmed that FedNow enables the processing of XRP transactions to selected bank accounts in the United States. This information emerged shortly after a report by The Crypto Basic, which indicated that FedNow processed a deposit transaction related to XRP to a US bank account.

This report sparked widespread skepticism within the cryptocurrency community. Some claimed they had never noticed a payment description containing FedNow when initiating similar cryptocurrency withdrawals from Uphold, while others considered it a joke.

However, Uphold has joined the discussion, confirming that FedNow processes XRP withdrawals to US bank accounts. In its statement, Uphold noted that residents of the United States whose banks support FedNow or RTP can benefit from instant XRP withdrawals to USD from Uphold.

Uphold also encourages users to look for the lightning symbol in the app for transactions that enable instant withdrawal. These instant withdrawals from Uphold, processed through both FedNow and RTP, incur a variable fee of 1.75%, with a minimum fee of $1 and a maximum fee of $150.

It is worth noting that FedNow, which began operations in July 2023, is managed by the Federal Reserve of the United States, while RTP, initially launched in 2017, is supervised by The Clearing House.

It is important to emphasize that while users withdraw XRP from Uphold to their bank accounts, the equivalent value in USD goes directly to their account, eliminating the need to sell the cryptocurrency for USD beforehand.

*This is not a financial advice