The Federal Reserve Board invited public comment on a proposal that would allow U.S. banks and credit unions to use intermediaries to transfer funds through the FedNow Service, expanding how participants can structure transfers beyond the current two-bank model. The Board said the added flexibility would support new private-sector use cases for FedNow, including enabling U.S. banks to use the service to transact with correspondent banks to facilitate the international portion of a cross-border payment. Under current rules, a FedNow funds transfer can include only two U.S. banks. Comments are due within 60 days after publication in the Federal Register.
Federal Reserve Board 2026-04-08
Federal Reserve Board consults on allowing intermediaries in FedNow funds transfers for banks and credit unions
The Federal Reserve Board proposed allowing U.S. banks and credit unions to use intermediaries to transfer funds through the FedNow Service, expanding the current two-bank model. The Board said this added flexibility would support new private-sector use cases, including enabling U.S. banks to use FedNow to transact with correspondent banks for the international portion of cross-border payments.