SHIFT · US
Federal Reserve enables cross-border payments via FedNow real-time system
The Fed is expanding FedNow—its domestic instant-payment rail launched in 2023—to support cross-border transfers. This shifts US payments infrastructure from batch-dependent correspondent banking toward instant, 24/7 international settlement.
WHY IT MATTERS
FedNow cross-border eliminates traditional nostro/vostro delays and reduces correspondent bank margins, reshaping how global banks route, price, and reconcile international payments; compliance and liquidity models must adapt.
Source: Finextra · 2026-09-25