The payment market is constantly evolving. To adapt to new trends, Metal Blockchain decides to integrate FedNow into its system. The information was officially released on May 11.
How does FedNow work?
Available from July, FedNow is a real-time payment system designed by the US Federal Reserve. This service, available 24 hours a day, ensures almost instantaneous payments between banks.
Recall that to make instant payments at the national level, US residents currently use:
- either payment applications,
- either crypto wallets.
What is Metal Blockchain?
Metal Blockchain is a crypto network implemented by Metallicus and based on a fork of Avalanche’s code. It was designed to offer developers of decentralized finance (DeFi) standards-compliant options.
Once FedNow integrates with Metal Blockchain, the network will also meet Bank Security Act (BSA) compliance standards. In other words, he will have identity verification features and fight against money laundering.
How would integrating FedNow with Metal Blockchain revolutionize financial transactions?
According to the CEO of Metallicusthe integration of FedNow with the blockchain technology Metal Blockchain would allow create interconnected “banking chains”. This will result in a larger and more secure blockchain ecosystem.
That’s not all ! It also makes it possible to design a blockchain that is not solely based on oracles. Banks and financial service providers will then be able to communicate easily with each other. This will ensure the speed of financial transactions. Banks will even be able to manage payments while remaining connected to the FedNow system.
Through FedNow’s “send/receive” feature, Metal Blockchain users will have the ability to instantly convert funds to stablecoin (and vice versa).
For the FED, the integration of FedNow with Metal Blockchain is a big step in the adoption of crypto. Also, this approach allows US banks to prepare upstream for the receipt of the possible digital currency from the Central Bank (CBDC). To be continued…
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