Prominent American cryptocurrency exchange Uphold has validated that FedNow is now processing XRP transactions to select U.S. bank accounts. This confirmation came after a recent report by The Crypto Basic highlighted a deposit transaction involving XRP to a U.S. bank account processed by FedNow.
The discovery was initially brought to light by XRP enthusiast Crypto Value Hunter, who noticed that the payment description of his XRP withdrawal indicated that the U.S. Federal Reserve instant payment system, FedNow, was involved in processing the XRP funds. This sparked skepticism among some community members, with concerns raised about the authenticity of the information, especially coming on April Fool’s Day.
Uphold has since stepped in to confirm that FedNow does indeed process XRP withdrawals into U.S. bank accounts. The exchange mentioned that residents in the United States whose banks support FedNow or RTP can now enjoy instant withdrawals in XRP to USD from Uphold. Users are advised to look out for the lightning symbol in the app for transactions where instant withdrawal is possible. These instant withdrawals, processed through FedNow or RTP, incur a variable fee of 1.75%, with a minimum charge of and a maximum cap of 0.
FedNow, launched in July 2023, is overseen by the U.S. Federal Reserve, while RTP, initiated in 2017, is managed by The Clearing House. When users withdraw XRP from Uphold to their banks, the equivalent USD value is deposited into their accounts, eliminating the need to first convert the crypto asset to USD. It is important to note that this feature of direct crypto withdrawal to a USD account is not exclusive to XRP, as other cryptocurrencies are also supported.
While some users have pointed out that this feature from Uphold is not new and has been available for some time, others are just now catching up with the update. This development is a significant step forward in facilitating seamless cryptocurrency transactions for users in the United States.
