Uphold, a digital asset platform based in the U.S., sent ripples through the XRP community on April 4, 2024, by confirming that FedNow processes XRP transactions for instant USD withdrawals for US users with compatible banks. This news follows speculation ignited by a community member on April 3 regarding a possible link between Uphold, XRP, and FedNow.
The initial excitement stemmed from a social media post detailing an unusually fast XRP withdrawal from Uphold to a user’s bank account. The mention of “FedNow” within the payment description fueled speculation of FedNow’s involvement which was still unannounced.
📢 FACT!
If you reside in the US, and your bank works with FedNow or RTP, you can Instantly Withdraw your $XRP to USD on Uphold!
Just look for the ⚡️ symbol in-app, select a source of funds, and its destination.
Learn more: https://t.co/Ga6nyJ61Wy#XRPArmy https://t.co/pBMv548Kiw
— Uphold (@UpholdInc) April 4, 2024
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This resonated with the XRP community for two key reasons. Firstly, XRP’s core strength lies in facilitating rapid cross-border payments, aligning perfectly with FedNow’s focus on instant settlements. Secondly, the potential involvement of FedNow in processing an XRP transaction sparked hopes of broader adoption of the digital asset within traditional financial systems.
Further reports from other XRP community members corroborated the initial claim, solidifying the possibility of a genuine connection. Chad Steingraber, A prominent community figure, explained, pointing to Ripple’s existing partnership with Uphold. He said this is aimed at enhancing Uphold’s cross-border payment infrastructure.
Steingraber theorized that Ripple Payments might be leveraging the FedNow network through Uphold to enable instant XRP deposits into US bank accounts. However, he pointed out that FedNow doesn’t utilize XRP for core transaction processing.
What’s Next In This New Partnership?
While Uphold’s confirmation is a significant development, some aspects require further examination. One key question lies in how Uphold is utilizing the FedNow network. Steingraber’s explanation suggests Ripple Payments as an intermediary, but official confirmation from Uphold or Ripple is necessary.
Another area to watch is XRP’s potential role within the FedNow network. While XRP’s functionality aligns with FedNow’s goals, Uphold’s confirmation doesn’t necessarily imply that FedNow is building on XRPL or planning anything for XRP.
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This announcement also shows the ongoing interest in building bridges between cryptocurrencies and traditional finance. Many see FedNow’s involvement as a sign of XRP breaking into traditional financial systems and institutions.
Uphold’s confirmation offers a potential glimpse into a future where cryptocurrencies like XRP can be seamlessly integrated with existing financial infrastructure, potentially leading to faster and more efficient transactions.
The XRP community has benefited greatly from Uphold’s partnership with Ripple, and this development presents exciting possibilities. As more information comes to light, we’ll gain a clearer understanding of the potential benefits for XRP, Uphold, FedNow, and the future interaction between cryptocurrency and traditional finance.
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