Uphold, a prominent American cryptocurrency exchange, has officially confirmed that the U.S. Federal Reserve’s instant payment system, FedNow, allows for instant XRP transactions to select U.S. bank accounts. This confirmation comes after initial skepticism from the broader community, but Uphold’s statement has put those doubts to rest.
Some users questioned the authenticity of the transaction, as it took place on April Fool’s Day. However, Uphold’s statement validates the transaction and assures residents of the United States that they can enjoy instant withdrawals in XRP to USD if their banks support FedNow or RTP.
Uphold has clarified the withdrawal process, stating that users can withdraw XRP directly to their bank accounts, with the equivalent USD value credited. This eliminates the need to sell the cryptocurrency beforehand. This feature is not exclusive to XRP, but extends to other supported cryptocurrencies as well.
To indicate which transactions are eligible for instant withdrawal, Uphold has introduced a lightning symbol in its app. Users who choose instant withdrawals through FedNow or RTP will incur a variable fee of 1.75%, with a minimum charge of $1 and a maximum cap of $150.
While Uphold’s confirmation is significant, questions remain about the extent of its integration with the FedNow network. Speculation suggests that Ripple Payments may be an intermediary, leveraging FedNow through Uphold to enable instant XRP deposits into US bank accounts. However, confirmation from Uphold or Ripple is needed to confirm this hypothesis.
The potential role of XRP within the FedNow network is also worth monitoring. Uphold’s confirmation hints at integration with traditional financial systems, but does not necessarily imply direct involvement in FedNow’s core transaction processing. Nonetheless, this development highlights the ongoing efforts to bridge the gap between cryptocurrencies and traditional finance.
Further reports from the XRP community have supported Uphold’s confirmation, solidifying the possibility of a genuine connection between FedNow and instant XRP deposits into U.S. bank accounts. Community figure Chad Steingraber has explained that Ripple’s partnership with Uphold aims to enhance the exchange’s cross-border payment infrastructure. While some community members have noted that this feature from Uphold is not entirely new, recent attention has brought its significance to the forefront.
The confirmation from Uphold and the positive community response have shed light on the practical implementation of instant XRP transactions through FedNow.
XRP is experiencing a significant surge in trading volume, with a notable increase of 87.55% in the last 24 hours. This surge in trading activity is not limited to a single platform, but encompasses multiple exchanges, indicating widespread market participation. In addition to the increase in trading volume, XRP has seen a rise of 4.26% in Open Interest over the last 24 hours, reflecting growing optimism and confidence among traders regarding XRP’s price potential.