Uphold, a well-known crypto exchange in the United States, has officially confirmed that the FedNow system supports XRP transactions to select U.S. bank accounts. This confirmation came after a report from The Crypto Basic revealed that a deposit transaction involving XRP was processed by FedNow to a U.S. bank account.
Initially, a cryptocurrency enthusiast named Crypto Value Hunter brought attention to the transaction when he noticed that the payment description of his XRP withdrawal indicated that FedNow had processed the XRP funds. However, this revelation was met with skepticism from the broader community. Some people claimed that they had never seen a payment description mentioning FedNow when they made similar crypto withdrawals from Uphold. Others thought it was a prank, as the information was shared on April Fool’s Day.
To address these doubts, Uphold stepped in and confirmed that FedNow does process XRP withdrawals to U.S. bank accounts. In a post, Uphold stated that U.S. residents whose banks support FedNow or RTP can enjoy instant withdrawals of XRP to USD from Uphold. The exchange also advised users to look for the lightning symbol in the app, which indicates that instant withdrawal is possible. These instant withdrawals, facilitated by FedNow or RTP, come with 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 originally launched in 2017. When users withdraw XRP from Uphold to their banks, the equivalent value in USD is deposited into their accounts, eliminating the need to sell the crypto asset first. This feature of direct crypto withdrawal to a USD account is not exclusive to XRP and is available for other cryptocurrencies as well.
Some members of the community have pointed out that this feature from Uphold is not new and has been available for some time. However, there are users who have only recently become aware of this update.
Disclaimer: This article is for informational purposes only and should not be considered as 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 their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.