Federal Reserve enables cross-border transaction support via FedNow

FedNow: FedNow is the Federal Reserve's instant payment service that allows participating financial institutions to send and receive funds transfers with final settlement in seconds, operating around the clock. It was launched to modernize U.S. payments infrastructure and compete in the real-time payments space. The current development involves regulatory adjustments to permit intermediaries, enabling FedNow to support the domestic leg of cross-border payments. Federal Reserve: The Federal Reserve is the central banking system of the United States, responsible for conducting monetary policy, supervising banks, and maintaining the stability of the financial system. It operates critical payment and settlement services, including real-time gross settlement systems. In the context of this news, the Federal Reserve is updating its FedNow service to extend real-time capabilities to the U.S. portion of cross-border transactions. Regulation: The Board of Governors proposed amendments to Regulation J in April 2026 to allow FedNow participants to use intermediaries other than Reserve Banks for funds transfers, specifically to support cross-border payment solutions. Industry Support: Stakeholders including fintech firms and banking associations submitted comments endorsing the proposal as a way to close gaps in U.S. payment infrastructure and improve efficiency for international transactions.