A recent post by XRP community member Crypto Value Hunter (@majesticboss55) on X has sparked discussions about the possible utilization of the FedNow network for XRP transactions.
Crypto Value Hunter reported that an XRP withdrawal from his Uphold account to his bank account was settled instantaneously, prompting him to investigate the entity responsible for the swift processing.
Just sent money from Uphold to my bank using #XRP. The transaction took place almost immediately. But to my surprise look who settled the transaction… before If pictures are worth 1000 words then you know what this means👀👀 👀 #FedNow @digitalassetbuy @DigPerspectives… pic.twitter.com/LTLa3HPwcX
— Crypto Value Hunter (@majesticboss55) April 1, 2024
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The payment description shows that FedNow, the instant payment system launched by the Federal Reserve Bank in the U.S., allegedly facilitated the transaction. Uphold has been a major supporter of XRP and partner of Ripple but the involvement of FedNow adds an intriguing layer of complexity to the situation.
This revelation generated a wave of optimism within the XRP community, primarily due to two factors. Firstly, the near-instantaneous settlement of the transaction aligns with one of XRP’s key strengths – its ability to facilitate rapid cross-border payments. Secondly, the potential involvement of FedNow in processing an XRP transaction has ignited speculation about the wider adoption of XRP within the traditional financial system.
Chris Gates (@chrisgatesjr), another XRP community member, indicated he had also experienced instant settlements for similar XRP transfers. This further fueled the discussion, with a U.S. Navy Veteran adding that this could represent a significant development for the digital asset. He believes global integration and adoption could happen much faster than many expect.
Community Figure Offers Speculative Explanation
Prominent XRP community member Chad Steingraber (@ChadSteingraber) offered a possible explanation for the apparent link between XRP, Uphold, and FedNow. Steingraber pointed to Ripple’s existing partnership with Uphold, designed to enhance the crypto exchange’s cross-border payment infrastructure.
Based on this partnership, Steingraber theorized that Ripple Payments might be leveraging the FedNow network through Uphold to enable instant deposits of XRP into U.S. bank accounts. However, Steingraber acknowledged that FedNow likely does not utilize XRP for its core transaction processing functionality.
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Important Clarification Regarding Ripple and FedNow
It’s crucial to clarify a potential misconception regarding the connection between Ripple and FedNow. While Volante Technologies, a partner of Ripple, was involved in the initial testing phase of the FedNow network, there is no current indication of an ongoing partnership between Ripple and the Federal Reserve Bank specifically related to XRP utilization within the FedNow system.
While these claims require further verification, the incident highlights the ongoing interest in potential bridges between the cryptocurrency world and traditional financial institutions.
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