The Federal Reserve's upcoming instant payment system, FedNow, released their certified "early adopters" list on June 29. The organizations on the list have been certified as ready to connect with the platform when it launches in late July. There are no blockchain networks on the list, despite at least two previously announcing that they would connect to the instant payment system.
The FedNow service stated that some organizations not on the list may be integrated at a later date, and Metal Blockchain said that it still intends to connect with the platform once it obtains “the appropriate bank sponsor.”
FedNow is an instant payment service under development by the United States Federal Reserve. The Federal Reserve claims the service will enable instant transfers between banks in the US, similar to the UK's Faster Payments and Europe's Single Euro Payments Area systems.
Currently, bank transfers within the US can only be made via ACH or wire transfers, which do not clear instantly. FedNow is release scheduled for July.
At least two blockchain networks have announced that they will "connect" to FedNow when it launches. One is the Metallicus metal blockchain. The Metallicus team stated in May that their network will allow instant conversion of cash to stablecoins through a connection to FedNow. At the time, FedNow's official website also listed Metallicus in its "service provider storefront," providing further evidence that the integration was going to happen.
This list was removed within days of the announcement being made. On May 15, Twitter user JeffXRP commented about the strangeness of his sudden elimination.
The list of “service providers” published on June 29 includes ACI Worldwide, ECS Fin, FPS Gold, Open Payment Network, and 11 other payment providers, but neither Metallicus nor Metal Blockchain are on it.
In a conversation with Cointelegraph, Metallicus co-founder and CEO Marshall Hayner claimed that the firm still intends to integrate Metal Blockchain with FedNow once it secures the proper bank sponsorship, stating:
"Metallicus is currently in communication with the Federal Reserve and the FedNow program administrators as we search for the appropriate bank sponsor and remain focused on developing our bank chain technology."
The other blockchain network that had announced integration with FedNow was Tassat, creator of the TassatPay service and Digital Interbank Network. Tassat claims that its network is a private business-to-business blockchain for commercial banks. In March, he announced that will connect your B2B digital payment platform to the next FedNow service.
Tassat was listed in the "service provider showcase" on the FedNow website as of June 30.
However, Tassat is not listed as a certified service provider on the June 30 list of "early adopters." Cointelegraph reached out to the Tassat team via email, but did not receive a response by press time.
In the Federal Reserve's announcement, it explained that some organizations not on the list may become service providers in the future:
“In addition to the early adopters, the Federal Reserve continues to work and onboard financial institutions and service providers that they plan to join later in 2023 and beyond, as the initial step in growing a robust network aimed at reaching the 10,000 financial institutions in USA”
FedNow has been criticized by some blockchain users for allegedly being a step towards a central bank digital currency (CBDC). US presidential candidate Robert F. Kennedy Jr. has claimed that it will lead to “financial slavery”. In April, the Federal Reserve issued a statement denying that FedNow is related to a CBDC.
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