Metallicus Launches Services on FedNow Instant Payments Platform

Metallicus Completes Testing for FedNow Instant Payments Platform

In a significant development for digital banking, Metallicus has officially announced the successful completion of its testing and certification phase on the United States Federal Reserve’s FedNow instant payments platform. This launch, revealed on October 22, 2023, comes over a year after the Fed unveiled the integration of the Metal Blockchain with FedNow, highlighting the extensive certification process aimed at onboarding thousands of financial institutions over time.

Overview of the FedNow Payment Service

The US Federal Reserve initiated its FedNow payment service in July 2023 to facilitate instant payments, replacing the outdated FedACH system. The previous system restricted banks and financial institutions to conducting transactions on weekdays during specific hours. In contrast, FedNow operates 24/7 all year round, making it significantly more efficient and cost-effective, with transaction fees approximately five times cheaper than traditional wire services.

Metallicus' Role and Future Goals

Don Berk, the Chief Operating Officer of Metallicus, stated: "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." This commitment underlines Metallicus's ambition to enhance connectivity and support for digital banking solutions.

Understanding the Metal Blockchain

The Metal Blockchain is built on an open, layer-zero Avalanche fork designed for security and scalability. According to the project's website, its architecture enables the deployment of an infinite number of subnets, each capable of processing up to 4,500 transactions per second. This robust framework also supports various programming languages and is equipped with built-in capabilities for decentralized applications (DApps) and smart contracts.

Comparison with Central Bank Digital Currencies (CBDCs)

Despite some confusion, the FedNow service is unrelated to central bank digital currencies (CBDCs). The U.S. Federal Reserve has clarified that FedNow does not carry any fiduciary liability, distinguishing it from the characteristics of CBDCs.

Conclusion

As the landscape of digital banking continues to evolve, the launch of services on the FedNow platform by Metallicus marks a pivotal moment for financial institutions aiming for modernization and efficiency. With capabilities that support high transaction volumes and continuous operations, FedNow and the Metal Blockchain present significant opportunities for transforming the banking experience.