Uphold, a major U.S. crypto exchange, has made it known that select U.S. bank accounts can receive XRP withdrawals instantly through FedNow, a payment system run by the U.S. Federal Reserve. This process allows users to convert XRP to USD quickly. Although this feature is not new, it is currently gaining attention. FedNow and RTP offer the necessary infrastructure for instant payments, marking a significant step towards integrating cryptocurrency with traditional financial systems.

The recent verification from Uphold about FedNow's support for XRP transactions to specific U.S. bank accounts has sparked interest among the crypto community. Although initially met with doubt and confusion, Uphold has verified the legitimacy of these transactions. U.S. residents with banks that support FedNow or RTP are now able to enjoy immediate XRP to USD withdrawals. Uphold users should look for the lightning symbol in the app to identify eligible transactions.

While there is a 1.75% variable fee for these transactions, with a minimum of $1 and a maximum of $150, the process is streamlined as there is no need to convert XRP to USD beforehand. FedNow, introduced by the U.S. Federal Reserve in July 2023, provides a platform for instant payments, while RTP, run by The Clearing House since 2017, offers real-time payments. Uphold's ability to withdraw XRP directly to a USD account is not exclusive to XRP but extends to other cryptocurrencies as well.

The confirmation by Uphold regarding XRP withdrawals to USD via FedNow prompts important questions about the partnership's specifics and XRP's role in the FedNow network. While this development suggests a deeper integration of cryptocurrencies into traditional finance, the details of how Uphold utilizes FedNow and XRP's participation remain unclear. Notably, prominent community figure Chad Steingraber mentioned that the partnership highlights the increasing interest in connecting cryptocurrency and traditional financial systems, potentially benefiting XRP and Uphold. According to Steingraber, Ripple Payments solely utilize Uphold and FedNow for rapid XRP payments to U.S. bank accounts, with XRP not playing a central role in FedNow's transaction processing.

Further details will shed light on the implications for all parties involved.