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- JPMorgan and Wells Fargo are among the member banks that will utilize FedNow; an instant payment system.
- Other member banks are partners of Ripple, raising the possibility of FedNow utilizing the XRP Ledger for instant payment.
JPMorgan and Wells Fargo are now partner members of the newly launched Federal Reserve’s instant payment service. As CNF reported, the FedNow service is a new payment system that will allow all participating banks (both big and small) to offer a modern instant payment solution.
According to a recent announcement, JPMorgan, BNY Mellon and Wells Fargo are the latest major banks to start using the FedNow that went live yesterday. To this point, around 35 banks and credit unions have joined the system.
Although still new, and the Federal Reserve is still calling on more banks to sign up, it’s significant that some of the largest banks in the U.S. are early adopters. This is an illustration of its importance, with many analysts pegging it a game changer. JPMorgan not only has a global presence but has over $2.6 trillion in assets. Wells Fargo on the other hand has around $1.8 trillion in assets.
Traditionally a slow process, the new system offers the banking system a much quicker facilitation of processes in the sector. Notably, BNY Mellon and 11 other banks have been listed as settlement agents and liquidity providers.
Ripple to facilitate FedNow
For months, there have been rumors that Ripple could be involved with FedNow. Late last month, the Federal Reserve Bank of America was rumored to be working with Ripple following some comments by Jerome Powell.
Was there a subtle nod to @ripple at yesterday’s press conference or just a coincidence? 🤔
1. Jerome Powell says he’s been a “Grateful Dead fan for 50 years.”
2. Congressman Wiley Nickel responds, “I’ve found one universal truth — I like people who like the Grateful Dead”
3.… pic.twitter.com/pv9LTUruMt
— NotFinancialAdvice.Crypto (@NFAdotcrypto) June 22, 2023
Unfortunately, after its launch, it’s been evident that Ripple is not working with the Federal Reserve. However, it’s clear that some of the banks utilizing FedNow are partners of Ripple. Specifically, they have been utilizing the blockchain technology offered by Ripple. While this leaves a possibility of a partnership and adoption of Ripple’s technology by the Federal Reserve, it remains an unlikely outcome.
FedNow’s widespread availability and potential adoption by thousands of financial institutions could have significant implications for the cryptocurrency market.
Furthermore, FedNow is said to offer a framework for the forthcoming launch of a CBDC which is in no way good news for the crypto industry. But with Ripple having worked on a CBDC platform that can help governments launch their own CBDCs, this could drive adoption from governments, central banks, and financial institutions to issue digital currencies using Ripple’s technology.
Read More: Survey Finds 93% of Central Banks Working on CBDCs, Ripple to Play Crucial Role in Launch
