Federal Reserve Expands Hedera (HBAR) and XRP Integration for RLUSD Payments

The Federal Reserve is advancing its integration of Hedera (HBAR) and Ripple's XRP, focusing on Ripple USD (RLUSD) payments.

The Federal Reserve is advancing its integration of Hedera (HBAR) and XRP, focusing on Ripple USD (RLUSD) payments. Shawn revealed on X (formerly Twitter) that the move aims to enhance the FedNow payment system by incorporating stablecoin capabilities for faster, more cost-effective transactions.

Hedera’s integration into the FedNow payment platform facilitated through Dropp has already established a foundation for its use in federal-level payment systems. Now, the partnership with Ripple’s XRP suggests a broader initiative to enable RLUSD transactions, pointing toward increased interoperability between the two blockchain networks.

Related: Federal Reserve officials propose pilot program for faster payments using blockchain

Hedera’s FedNow Integration and Its Expansion

Hedera is now a key player in blockchain-powered federal payment solutions due to its successful integration into the FedNow payment system. The U.S. Federal Reserve launched FedNow, a real-time payment service, with the goal of streamlining financial institution transactions. Hedera, through its micro-payments platform Dropp, supports these efforts by offering a secure and efficient blockchain framework.

Shawn’s tweet indicates that the current integration may soon expand to include more extensive features, such as enabling seamless RLUSD payments. This development marks a new phase in Hedera’s partnership with federal institutions, potentially setting a precedent for broader blockchain adoption in the financial ecosystem.

🚨BREAKING: $HBAR integration into the Federal Reserve to expand in partnership with $XRP to enable RLUSD paymentsAfter Hedera was successfully integrated into the FedNow payment system of the U.S. Federal Reserve through dropp, there might soon be an expansion of the… pic.twitter.com/z4y0NmLJvK

Hedera price reacted positively to the news and surged over 6% in the past hour to reach $0.24 at the time of writing. XRP price also showed a slight uptick following the development.

The integration of XRP and Hedera into the Federal Reserve’s payment system is a significant development that could pave the way for wider blockchain adoption in the financial sector. Both Hedera and XRP are known for their fast transaction speeds and low costs, making them suitable candidates for enhancing the efficiency of the FedNow service.

Moreover, the partnership between Hedera and Ripple aligns with recent efforts to standardize Central Bank Digital Currency (CBDC) and stablecoin settlements on a global scale. This collaboration could ultimately provide unified solutions for both domestic and international payment systems.

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