The Federal Reserve proposes allowing banks to use FedNow services for transfers via intermediaries.

The Federal Reserve released a proposal on Wednesday to allow U.S. banks and credit unions to use the FedNow service for transferring funds through intermediary institutions, in order to support more private sector use cases such as collaborating with correspondent banks to complete the international portion of cross-border payments via FedNow. Currently, fund transfers through the FedNow service are limited to transactions between two U.S. banks. Public comments must be submitted within 60 days after the proposal is published in the Federal Register.