Cryptocurrency enthusiasts are buzzing with excitement as Uphold, a major U.S. crypto exchange, confirms a groundbreaking development: FedNow, the payment system of the U.S. Federal Reserve, now facilitates instant XRP withdrawals directly to select U.S. bank accounts. This advancement allows users to seamlessly convert their XRP to USD and withdraw funds instantly.
While this feature isn’t entirely new, its recent resurgence has captured the attention of the crypto community, marking a significant step toward merging digital assets with traditional finance.
Speculations initially arose after a nod from XRP advocate Crypto Value Hunter, sparking a mix of skepticism and curiosity, with some dismissing it as an elaborate April Fool’s prank.
However, Uphold has stepped forward to validate these transactions, affirming that U.S. residents with bank accounts linked to FedNow or RTP (Real-Time Payments) can now enjoy the convenience of instant XRP to USD withdrawals. Uphold users can easily spot eligible transactions by identifying the lightning symbol within the app interface.
While the convenience is undeniable, users should be aware of a variable fee of 1.75%, ranging from a minimum of $1 to a maximum cap of $150. Nevertheless, this fee structure simplifies the process by eliminating the need to convert XRP to USD beforehand.
Read More: Here’s How XRP Price will be Impacted from Ripple’s Stablecoin Launch
FedNow and RTP
FedNow, introduced by the U.S. Federal Reserve in July 2023, serves as a platform for instantaneous payments, complemented by RTP, launched by The Clearing House in 2017. Uphold’s milestone isn’t exclusive to XRP but extends to other supported cryptocurrencies as well.
Uphold’s revelation prompts questions about the specifics of this partnership and XRP’s role within the FedNow network. While it suggests a deeper integration of digital currencies into traditional financial systems, the finer details of Uphold’s utilization of FedNow and XRP’s involvement remain unclear.
Prominent community figure Chad Steingraber emphasizes the significance of bridging the gap between cryptocurrency and traditional financial systems. He suggests potential benefits for both XRP and Uphold, noting that Ripple Payments exclusively leverages Uphold and FedNow to expedite XRP transactions into U.S. bank accounts. Notably, XRP isn’t utilized for core transaction processing within FedNow.
Further insights are eagerly awaited to unveil the full implications for all stakeholders involved. As the partnership between Uphold and FedNow evolves, it promises to reshape the landscape of crypto-fiat transactions.
Also Read: XRP Price Defies Whale Dumps, Surges 4%: Is $1 Finally in Sight?
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