Digital banking network Metallicus has successfully completed certification for the FedNow instant payments system of the Federal Reserve. Announced on October 22, this achievement marks a significant milestone for the company, which has been preparing for this certification since mid-2023.
The path to certification highlights the Federal Reserve’s dedication to onboarding a variety of financial firms into its new payment system. Don Berk, the Chief Operating Officer of Metallicus, emphasized that the company has worked diligently with its internal teams and banking partners to meet the necessary requirements for certification, thus enhancing the capabilities of the Metallicus Digital Banking Network.
Metallicus is supported by Metal Blockchain, an open-source platform built on the Avalanche protocol. The platform’s unique design allows for nearly limitless scalability with subnets that can handle up to 4,500 transactions per second. Its flexibility in supporting multiple programming languages, distributed apps (DApps), and smart contracts makes it highly attractive for a range of use cases.
Launched in July 2023, the FedNow payment system aims to provide instant payment services. Unlike the older FedACH® system, which operates on limited hours, FedNow runs 24/7, offering financial institutions a more efficient and timely option for processing transactions. However, it is important to note that FedNow operates alongside existing payment systems like FedACH® and is not intended to replace them.
While some comparisons have been made between FedNow and central bank digital currencies (CBDCs), the Federal Reserve has clarified that FedNow is not a CBDC and does not carry any government-backed currency obligation. With Metallicus now certified for the FedNow system, the company joins the growing list of service providers helping to shape the future of instant payments in the U.S.
