Metallicus secures FedNow transaction certification

As a seasoned crypto investor with a keen eye for potential disruptors, I find the collaboration between Metallicus and the FedNow instant payments platform highly intriguing. Having navigated through numerous blockchain projects over the years, I’ve learned to appreciate the significance of partnerships like this that bring traditional finance and decentralized technology closer together.


Metallicus, a digital banking network, has officially launched its services following successful testing and certification on the U.S. Federal Reserve’s FedNow system for real-time payments.

The Oct. 22 announcement comes more than a year after the Fed announced Metal Blockchain’s integration with FedNow, highlighting the lengthy certification process as the central bank purportedly aims to onboard thousands of financial institutions over time. 

Per Don Berk, the chief operating officer of Metallicus:

“Metallicus has worked diligently to be certified as a service provider to financial institutions on the FedNow Service. We have been working closely with our banking partners and engineering team to secure this certification, bringing even greater connectivity to the Metallicus Digital Banking Network.”

Metal Blockchain

The “Metal Blockchain” is a version derived from Avalanche that operates as an open, foundational network. As proposed by its creators, it was crafted with the aim of being highly secure and, in theory, capable of limitless expansion.

The project’s website explains that its design supports an unlimited creation of subnets, each capable of handling up to 4,500 transactions every second.

One attractive feature of this platform is its ability to handle several coding languages and built-in functionality for Decentralized Applications (DApps) and smart contracts.

Metallicus secures FedNow transaction certification

FedNow

In July 2023, the United States Federal Reserve introduced the FedNow payment service. This innovative platform aims to streamline transactions by enabling instant money transfers, effectively replacing the older FedACH system.

As a financial analyst, I’ve noticed that when using the FedACH system, our institution, along with other banking entities, was only able to execute transactions within the Federal Reserve’s infrastructure during weekday business hours.

The FedNow service is accessible round-the-clock, every day of the year, and it’s been reported by the government that it costs around five times less than conventional money transfer systems.

Although some people draw similarities between the FedNow service and a Central Bank Digital Currency (CBDC), the U.S. Federal Reserve clearly states that there is no direct connection. Unlike CBDCs, the U.S. government does not assume any financial responsibility for the FedNow service since it holds no fiduciary liability in this context.

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2024-10-22 23:35