Users will reportedly be able to convert fiat money into stablecoins upon the merger of Metal Blockchain and FedNow, opening doors for them in DeFi.
The Federal Reserve had earlier announced the launch of FedNow, an instant payment protocol for users that would enable them to make bank-to-bank payments instantly without requiring any third-party apps. While this service is expected to be launched in July 2023, the Metal Blockchain has made a revelation that it will integrate with FedNow.
The blend of both FedNow and the Metal blockchain would be a catalyst for its users to easily convert cash into stablecoins and then send or receive them. The latter has been built by Metallicus and is meant for decentralized finance (DeFi) developers as a compliance-friendly option.
The Metal Blockchain has built-in anti-money laundering and identity verification features, and is likely one of the first blockchains to be integrated with the FedNow service.
FedNow program executive Ken Montgomery had invited members of the industry and other financial institutions to join the FedNow service to make it a popular tool for payments. The executive had said, “We couldn’t be more excited about the forthcoming FedNow launch, which will enable every participating financial institution, the smallest to the largest and from all corners of the country, to offer a modern instant payment solution.”
The cash-to-stablecoin conversion feature offered after its merger with Metal Blockchain could have several long-term benefits, including linking the banking infrastructure with blockchain, a fluid payments system coupled with stablecoins, and a trailer for the use cases of CBDCs in the future.