Uphold Enables US Bank Customers to Effortlessly Convert XRP to USD via FedNow or RTP!
Uphold, a prominent cryptocurrency exchange in the United States, has confirmed that XRP withdrawals can now be processed to select U.S. bank accounts through FedNow, a payment system managed by the U.S. Federal Reserve. This feature, although not new, is now gaining attention in the crypto community. FedNow, together with RTP, offers a framework for instant payments, representing a significant move towards integrating cryptocurrencies with traditional finance.
Uphold’s announcement regarding XRP transactions through FedNow has caused a stir in the crypto community. Initially, there was skepticism and confusion surrounding this news, with some dismissing it as an April Fool’s joke. However, Uphold has come forward to validate these transactions, stating that U.S. residents with banks supporting FedNow or RTP can now enjoy instant withdrawals of XRP to USD. Uphold users are advised to look for the lightning symbol in the app, which indicates transactions eligible for instant withdrawal.
Although these transactions come with a variable fee of 1.75% (with a minimum charge of $1 and a maximum cap of $150), they streamline the process by eliminating the need to convert XRP to USD beforehand. FedNow, managed by the U.S. Federal Reserve and launched in July 2023, provides a platform for instant payments, while RTP, supervised by The Clearing House and launched in 2017, offers real-time payments. Uphold’s ability to withdraw XRP directly to a USD account is not limited to XRP alone, as it supports other cryptocurrencies as well.
Uphold’s confirmation of XRP withdrawals to USD through FedNow raises important questions about the specifics of the partnership and XRP’s role in the FedNow network. While this development suggests a greater integration of cryptocurrencies into traditional finance, details about how Uphold utilizes FedNow and the extent of XRP’s involvement remain unclear.
Chad Steingraber, a prominent figure in the crypto community, stated that this partnership highlights the increasing interest in bridging cryptocurrency and traditional financial systems, offering potential benefits for both XRP and Uphold. Steingraber mentioned that Ripple Payments exclusively uses Uphold and FedNow to facilitate fast XRP payments into U.S. bank accounts, emphasizing that XRP is not used for core transaction processing at FedNow.
Further insights into this partnership will provide a clearer understanding of the implications for all parties involved.