Federal Reserve Proposes FedNow Rule Changes to Support Cross-Border Payments

FedNow, launched by the Federal Reserve Banks on July 20, 2023, is a round-the-clock interbank real-time gross settlement service. Regulation J currently limits each transfer to two U.S. banks, restricting the service to domestic payments. Easing the rules on intermediaries would allow private providers to connect instant settlement in the United States with the international leg handled by correspondent banks, making cross-border payments faster and more flexible.

The Federal Reserve Board unanimously approved the proposal on April 7, 2026, and opened it for public comment on April 8. The proposed changes to Subpart C of Regulation J would allow banks and credit unions to use intermediaries other than Federal Reserve Banks. The comment period closed on June 9. FedNow settled 2,728,510 transactions worth a total of $271.25 billion in the first quarter of 2026, up 10.6% and 7.7% from the previous quarter, respectively.