Volante Technologies, a leading cloud payments company and partner of Ripple, has successfully completed the pilot test on the US Federal Reserve’s instant payments system, FedNow. This development is expected to indirectly benefit Ripple and its native cryptocurrency, XRP, as Ripple, and its partners have been actively involved in the development of FedNow.
Alongside Ripple, ACI Worldwide and Finastra, Volante Technologies has played a significant role in the development of FedNow, which is the US Federal Reserve’s instant payments system. Volante Technologies, as the cloud payment leader among the partners, has worked with a prominent custodian bank to conduct the successful pilot testing of the system. During the pilot test, the groups tested various features of the system, including ‘send,’ ‘receive,’ and ‘bank-to-bank’ transfers, to assist banks in adapting to the new network.
The FedNow network is scheduled to be launched on July 20, 2023. In the meantime, financial institutions can test their connectivity to the FedNow network with the help of Volante Technologies and offer instant payment services. The collaboration between Volante Technologies and the financial institutions aims to ensure a smooth transition to the new instant payment system when it becomes operational.
Reed Luhtanen, the Executive Director of the U.S. Faster Payments Council (FPC), commended Volante Technologies for its commitment to driving industry progress and supporting financial institutions. Luhtanen acknowledged Volante’s role in providing innovative solutions and expertise to banks embarking on their instant payments journey.
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Volante Technologies offers a comprehensive solution to support all U.S. real-time payments, including the Federal Reserve’s FedNow service, The Clearing House RTP®, and Zelle®. This solution is available in various formats, including on-premise, cloud-based, or as a payments-as-a-service model. According to Deepak Gupta, the global head of payments at Volante Technologies, key features such as the ability to automate payments and the flexibility of funds are driving businesses towards faster payment options.
The US Federal Reserve has granted permission to 57 financial firms to use the FedNow instant payments system initially. Prominent financial institutions, such as JPMorgan Chase, Wells Fargo, US Bancorp, and Bank of New York Mellon, are included on the list. Ken Montgomery, the FedNow program executive, expressed confidence in the launch of the FedNow service, mentioning the strong cohort of financial institutions and service providers that have successfully completed the final round of readiness testing.
There is speculation within the crypto community that Ripple and XRP may benefit from the FedNow Network. Some claim that subscribers of Volante Technologies, being connected with Ripple, may have the ability to use XRP on its platform. This integration between Volante and Ripple has led to conjecture about potential benefits for XRP and its price.
Market analysis suggests that the price of XRP has shown bullish momentum since June 30, with the potential for a breakout above $0.55. June is considered a crucial month for XRP, with ongoing proceedings in the Ripple vs. SEC lawsuit and on-chain data that could drive the price to $1.
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In conclusion, the completion of the pilot test on the FedNow instant payments system by Volante Technologies, in collaboration with a prominent custodian bank, is a significant milestone. The upcoming launch of the FedNow network is expected to indirectly benefit Ripple and XRP, as Ripple and its partners have actively contributed to the development of the system. This development, coupled with the bullish momentum in the XRP price, has generated optimism among the crypto community regarding the potential benefits for XRP and its integration within the FedNow Network.
