Uphold Facilitates Swift USD Withdrawals via FedNow, Enabling Instant XRP Transactions.
Uphold, a major U.S. cryptocurrency exchange, has confirmed a groundbreaking development that allows users to withdraw XRP directly to select U.S. bank accounts via the FedNow payment system of the U.S. Federal Reserve. This advancement signifies the growing connection between cryptocurrencies and traditional finance.
Although not entirely new, this feature has recently gained attention within the crypto community, showcasing a significant step towards merging digital assets with traditional financial systems.
Speculations about this development initially arose after a hint from XRP advocate Crypto Value Hunter, leading to a mix of skepticism and curiosity. However, Uphold has come forward to validate these transactions, stating that U.S. residents with bank accounts linked to FedNow or RTP (Real-Time Payments) can now benefit from instant XRP to USD withdrawals. Eligible transactions can be easily identified by the lightning symbol within the Uphold app interface.
While the convenience of this feature is undeniable, users should be aware of a variable fee of 1.75%, with a minimum of $1 and a maximum cap of $150. Nevertheless, this fee structure simplifies the process by eliminating the need to convert XRP to USD beforehand.
The FedNow system, 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 is not exclusive to XRP but extends to other supported cryptocurrencies as well.
Uphold’s revelation raises questions about the specifics of the 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.
Chad Steingraber, a prominent figure in the crypto community, emphasizes the significance of bridging the gap between cryptocurrency and traditional financial systems. He suggests potential benefits for both XRP and Uphold, highlighting that Ripple Payments exclusively leverages Uphold and FedNow to expedite XRP transactions into U.S. bank accounts. It is important to note that XRP is not utilized for core transaction processing within FedNow.
Further insights are eagerly anticipated to unveil the full implications for all stakeholders involved. As the partnership between Uphold and FedNow evolves, it has the potential to reshape the landscape of crypto-fiat transactions.