The update directly addresses regulatory changes enabling cross-border payment functionality through FedNow, a critical clearing and settlement infrastructure system.
The proposed rule explicitly enables cross-border payments by permitting non-Reserve Bank intermediaries, making cross-border payment capability a core secondary focus.
Specialism
The update concerns regulatory amendments to FedNow's operational framework and intermediary rules, which relates to supervisory oversight of payment system infrastructure and regulatory modernization.
Low confidence — requires human review. The proposed rule changes could affect prudential standards or regulatory reporting for cross-border payments, but the update lacks specific compliance obligations or substantive regulatory requirements.
2026-04-09 02:13:40·reprocess@vixio.com
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The Fed is proposing to allow the use of intermediaries that are not Reserve Banks, which would facilitate cross-border transactions
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TITLE: United States Federal Reserve Proposes Opening FedNow Service to Cross-Border Payments
BODY:
On April 8, 2026, the Federal Reserve proposed a new rule to permit banks and credit unions to use intermediaries other than Reserve Banks to send transfers through the FedNow payments service. This change would enable cross-border payments, which are currently prohibited under existing FedNow regulations.
Currently, FedNow participants are restricted from using intermediaries other than Reserve Banks, preventing U.S. banks from sending payments to financial institutions outside the country. The Federal Reserve's proposed amendments would allow the use of non-Reserve Bank intermediaries to facilitate cross-border transactions. This change would align FedNow with the Fedwire Funds Service, which has permitted intermediaries for decades.
The proposed rule addresses a significant gap in the FedNow service's functionality, enabling faster cross-border payment capabilities for participating financial institutions. The amendments would modernise the regulatory framework governing FedNow operations and expand its utility for international transactions.
The Federal Reserve is seeking public input on the proposed amendments. Comments must be submitted within 60 days after publication in the Federal Register.
REFERENCES:
Federal Reserve. "Fed proposes opening FedNow to cross-border payments." ABA Banking Journal, April 8, 2026. https://www.ababj.com/fed-proposes-opening-fednow-to-cross-border-payments