The Federal Reserve’s instant payment service, FedNow, will allow Metal Blockchain users to convert funds into stablecoins and vice versa using its “send/receive” feature.
The Solution to Instant and conditional stablecoin conversions
As FedNow is anticipated to launch in July, it will provide a fast and secure payment service for banks, benefitting American consumers and businesses that require these services.
The Metal Blockchain network offers a compliant and flexible crypto network for DeFi, with identity verification, anti-money laundering features, and an “X-Chain” subnet that enables developers to create tokens with specific rules and conditions.
Metal Blockchain team announced on May 11 that the network would integrate with FedNow’s “send/receive” feature, allowing users to convert funds into stablecoins and vice versa instantly.
Stablecoins are digital tokens pegged to fiat currencies or other assets used to reduce volatility and facilitate cross-border transactions.
Consequently, this integration will allow Metal Blockchain users access to FedNow’s quick and secure payment system and the network’s compliance features. For instance, users can restrict stablecoins from being traded until a specific date or send them only to verified US citizens.
A potential for creating interconnected “bank chains”
According to Marshall Hayner, CEO and co-founder of Metallicus, “the integration of FedNow and Metal Blockchain could pave the way for the creation of interconnected “bank chains.”
These blockchain networks can communicate and process transactions without depending on external information or verification sources.
However, this could result in a broader, more secure, and interoperable blockchain ecosystem that can support a variety of use cases and applications beyond the financial sector.
