(13 April 2026 – United States) The Federal Reserve is seeking feedback on a proposal that would extend its FedNow service to support cross-border transactions, marking a potential evolution beyond its current domestic-only scope.
Since launching in 2023, FedNow has been limited to US-based transfers due to restrictions on intermediary use, allowing only participating banks and reserve banks to be involved in transactions. This structure has prevented the system from facilitating international payments.
In response to growing demand from participants, the Fed is proposing to allow additional intermediaries—such as correspondent banks—to support the international leg of transactions, while FedNow handles the domestic component. The central bank said the change could enable private-sector solutions to deliver faster and more efficient cross-border payments.
The proposal, which has been unanimously backed by the Fed’s board, is now open for a 60-day public consultation period.
Kellie Johnson, SVP of Payments Americas at RedCompass Labs, says: “This is a positive step toward enabling cross-border payments through FedNow, and aligns with the G20’s push to interlink domestic real-time payment systems.”
However, she cautioned that structural challenges remain: “interoperability isn’t solved by access alone. There are still real challenges around FX, compliance across jurisdictions, and broader FedNow adoption. There is also a risk that adding another intermediary simply introduces more complexity without delivering the speed and transparency that businesses and consumers increasingly expect.
“A key question will be who fills that intermediary role, whether it is traditional correspondent banks or major card network players like Visa and Mastercard that are actively building out their cross-border infrastructure. That competition could significantly reshape the future of correspondent banking.”