Uphold, a well-known American cryptocurrency exchange, has confirmed that XRP transactions to select U.S. bank accounts are facilitated by FedNow. This confirmation follows a recent report by The Crypto Basic, which revealed that FedNow processed a deposit transaction involving XRP to a U.S. bank account.
The initial observation was made by Crypto Value Hunter, an enthusiast of XRP, who noticed that the payment description of his XRP withdrawal indicated that the U.S. Federal Reserve’s instant payment system, FedNow, had processed the XRP funds. However, this sparked skepticism within the wider community, with some claiming they had never seen a payment description related to FedNow when initiating a similar crypto withdrawal from Uphold. Some even thought it was an April Fool’s Day prank.
Uphold has now stepped into the conversation and confirmed that FedNow does indeed process XRP withdrawals into U.S. bank accounts. In their post, Uphold stated that residents of the United States whose banks support FedNow or RTP can enjoy instant withdrawals in XRP to USD from Uphold. To identify transactions where instant withdrawal is possible, Uphold urged users to look for the lightning symbol in the app. These instant withdrawals, facilitated through FedNow or RTP, carry a variable fee of 1.75%, with a minimum charge of $1 and a maximum cap of $150.
It is important to note that FedNow, managed by the U.S. Federal Reserve, was launched in July 2023, while RTP, supervised by The Clearing House, was initially introduced in 2017. When users withdraw XRP from Uphold to their banks, the equivalent value in USD is deposited into their account. This process eliminates the need to sell the crypto asset for USD first. Moreover, this feature of direct crypto withdrawal to a USD account is not exclusive to XRP, as other cryptocurrencies are also supported.
While some community members have pointed out that this feature from Uphold is not entirely new and has been available for some time, others are just now becoming aware of it.
Please note that the information provided in this article is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.
