RTP, FedNow Rule Changes Advance Cross-Border Instant Payments

FedNow, launched by the Federal Reserve in July 2023, gives participating U.S. banks and credit unions a 24/7/365 rail for instant domestic payments. Its rules currently limit each transfer to two U.S. banks, leaving international dollar flows dependent on systems such as Fedwire and correspondent banking. Expanding FedNow to settle the U.S. leg of cross-border transactions would add an always-on option for remittance providers and global businesses, potentially cutting delays and costs without giving nonbanks direct access to Federal Reserve accounts.

The Fed proposed amendments to Regulation J on April 8, 2026, allowing participants to route FedNow transfers through intermediaries other than Reserve Banks; comments closed June 9. Stripe, Visa and Wise submitted support alongside payments trade groups. Stripe urged swift finalization and a companion easing of FedNow’s on-behalf-of residency restriction, while Visa said the change would expand competition and routing choice. Wise said its 19 million customers processed more than $243 billion in cross-border transactions in fiscal 2026, with 75% of payments delivered in under 20 seconds.

The Clearing House, which is owned by a consortium of banks, is working to extend its RTP network across borders. Traditional international transfers involve multiple intermediary banks, foreign-exchange processing and compliance checks, and can take as long as three days to complete. Adding real-time payment capabilities could help financial institutions shorten settlement times and compete with FedNow, Visa and digital-asset providers.

The Clearing House plans to add support for international real-time payments to the RTP network in the coming months, enabling financial institutions and consumers to process cross-border transactions more quickly. At the time of the report, it had not announced an exact launch date, partner markets, transaction values or fee structure. The implementation timeline remains undisclosed.

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.