FedNow Opens the Door to Cross-Border Payments for the First Time

The Federal Reserve Board voted unanimously on April 8, 2026, to propose amendments to Regulation J that would allow FedNow participants to use third-party intermediaries , like correspondent banks , when sending funds transfers, which, surprisingly, the system has never permitted before. Right now, every FedNow transfer is locked to a three-party structure: two U.S. financial institutions plus a Reserve Bank, full stop. No foreign legs. No international handoffs.

The proposed change would let a U.S. bank handle the domestic portion of a cross-border payment through FedNow, then pass the international leg off to a foreign correspondent bank , the same hybrid model Fedwire has honestly been running for decades. It's a structural shift, not a cosmetic one and it's the most significant modification to FedNow since its July 2023 launch.

Who It Affects

U.S.-based digital nomads and expats abroad stand to benefit most, the gains flow through banking infrastructure rather than directly to your phone, but faster settlement and less SWIFT friction are real wins. Over 1,600 participating U.S. banks and credit unions would gain new flexibility, correspondent banks outside the U.S. would plug into the FedNow ecosystem as intermediaries and international travelers receiving U.S. funds could see quicker access times.

Current FedNow fees are minimal , $0.045 per credit transfer, $0.01 per Request for Payment and $0.00 monthly participation fee through 2026 , though the proposal doesn't specify whether cross-border transfers will carry additional charges. That's the part worth watching.

What To Do Now

• Comments are due within 60 days of the proposal's Federal Register publication date, which hasn't been announced yet , check the Fed's site if you're a financial institution with a stake in this.
• If you're a nomad or expat, don't restructure anything yet, this is still a proposal, not a final rule.
• Ask your U.S. bank whether they're a FedNow participant and whether they're planning to support cross-border functionality once it clears.

The nomad news on payment infrastructure moves slowly, then all at once, this proposal is worth tracking. Check our country guides for destination-specific banking and transfer tips.