Fedwire Funds Service
FedwireACTIVEOperator: Federal Reserve Banks
Overseer: Board of Governors of the Federal Reserve System
Legal basis: Federal Reserve Act (Section 11A), Federal Reserve Operating Circular No. 6
Launched: Jan 1, 1918
Quick reference: View technical card →
Executive Summary
Fedwire Funds Service is the United States' Real-Time Gross Settlement system, operated by the Federal Reserve Banks. It is the backbone of the US financial system, processing over $4 trillion in daily value across approximately 800,000 transactions. Fedwire provides immediate, final, and irrevocable settlement in central bank money (Federal Reserve balances). It is used for large-value interbank transfers, securities settlement, government payments, and as the final settlement mechanism for other payment systems including CHIPS and FedACH.
How It Works
Settlement Model
Real-Time Gross Settlement (RTGS)
Message Standard
ISO 20022 (migrated July 14, 2025 from proprietary Fedwire format; originally planned for March 10, 2025)
Max Transaction
No limit (individual transactions of $1B+ are routine)
Clearing Mechanism
Direct RTGS — no clearing layer. Each transaction is settled individually in real time.
Settlement Cycle
Operating hours: 21:00 ET (prior day) to 19:00 ET, weekdays. Cutoffs: 17:00 ET (tax payments), 18:45 ET (third-party transfers), 19:00 ET (bank-to-bank). Expansion to 22x6 hours (including Sundays and weekday holidays) confirmed for 2028-2029 implementation (announced October 9, 2025).
Message Flow
The sending depository institution submits a payment order to its Federal Reserve Bank via FedLine Direct or FedLine Advantage. The Federal Reserve debits the sender's account and credits the receiver's account simultaneously. Settlement is immediate, final, and irrevocable. The receiving institution is notified. Intraday credit (daylight overdraft) is available subject to limits and fees.
Typical Use Cases
Large-value interbank transfers, corporate treasury payments, securities settlement (DTC), CLS settlement, CHIPS final settlement, federal government payments, real estate closings
Key Data
Daily Volume
917,152 transactions (Q2 2026 avg)
As of Jun 30, 2026 · Federal Reserve Financial Services
Participants & Access
Membership Requirements
Open to depository institutions that maintain a Federal Reserve account (Federal Reserve master account). Foreign banking organizations may participate through US branches/agencies.
Governance & Risk
Governance Model
Operated by the Federal Reserve Banks under the authority of the Board of Governors. Operating Circular No. 6 governs terms of service. Changes follow a public notice and comment process.
Concentration Risk
Highest systemic importance of any US payment system. Designated as systemically important by the Financial Stability Oversight Council (FSOC). Failure would have catastrophic effects on US and global financial markets.
Resilience & Business Continuity
Multi-site architecture with geographic separation. Regular contingency testing. FedLine provides redundant connectivity. Daylight overdraft facilities ensure liquidity. Extended operating hours reduce time pressure.
Dispute Resolution
Governed by Operating Circular No. 6 and Regulation J (Subpart B). Disputes over unauthorized transfers follow UCC Article 4A provisions.
Pricing
Fedwire pricing follows a fee schedule published by the Federal Reserve. Fees include per-transfer charges, offline surcharges, and account maintenance fees.
Transaction fee: $0.82 per transfer (online, 2024 fee schedule)
Source: Federal Reserve
Connectivity
settles for
CHIPS
CHIPS daily net settlement positions are settled via Fedwire
settles for
FedACH / Nacha
FedACH settlement balances are posted to Federal Reserve accounts
operated alongside
FedNow
FedNow and Fedwire are both operated by the Federal Reserve, using the same master accounts
Peer Comparison
Fedwire is the US equivalent of T2 (eurozone) and CHAPS (UK). By daily value, Fedwire ($4T+) exceeds CHAPS (~£400B) but is comparable to T2 (~€2.1T). Fedwire's March 2025 ISO 20022 migration aligned it with T2 (migrated March 2023) and CHAPS (migrated June 2023). Planned 22-hour operating day will approach T2's extended hours.
Compare in detail →Regulatory Framework
Apr 1, 2025
CHIPS ISO 20022 migration complete
CHIPS completes migration to ISO 20022 message format, aligning with Fedwire’s March 2025 migration.
Jul 1, 2026
Durbin Amendment debit interchange review
Federal Reserve Regulation II debit interchange cap. Current cap: $0.21 + 0.05% per transaction + $0.01 fraud-prevention adjustment. Fed proposed reducing to $0.144 + 0.04% in October 2023, not yet finalized. Under dual appellate challenge in Sixth Circuit (Linney's Pizza) and Eighth Circuit (Corner Post). Affects banks with >$10B assets.
678dJun 30, 2028
Fedwire extended operating hours
Fedwire expanding to 22 hours/day, 6 days/week, 365 days/year. Significant change for correspondent banking and cross-border payment windows.
Timeline
Jun 30, 2026
Fedwire average daily transactions increased to 917,152 (Q2 2026 avg)
Fedwire average daily transactions changed from 869,187 (2025 avg) to 917,152 (Q2 2026 avg). Recorded by ClearingPost from automated source verification on 2026-07-27.
SourceJun 30, 2026
Fedwire average daily value increased to $4.830T (Q2 2026 avg)
Fedwire average daily value changed from $4.593T (2025 avg) to $4.830T (Q2 2026 avg). Recorded by ClearingPost from automated source verification on 2026-07-27.
SourceJun 30, 2026
Fedwire daily transaction volume increased to ~917,000 transactions
Fedwire daily transaction volume changed from ~869,000 transactions (as of 2025-01-01) to ~917,000 transactions (as of 2026-06-30) (approximate). Recorded by ClearingPost from automated source verification on 2026-07-27.
SourceJun 30, 2026
Fedwire daily transaction value increased to ~$4.83 trillion
Fedwire daily transaction value changed from ~$4.59 trillion (as of 2025-01-01) to ~$4.83 trillion (as of 2026-06-30) (approximate). Recorded by ClearingPost from automated source verification on 2026-07-27.
SourceJun 30, 2026
Fedwire subsystem record increased to 917,152 transactions (Q2 2026 avg)
Fedwire subsystem record changed from 869,187 transactions (2025 avg) (as of 2025-12-31) to 917,152 transactions (Q2 2026 avg) (as of 2026-06-30). Recorded by ClearingPost from automated source verification on 2026-07-30.
SourceJun 30, 2026
Fedwire subsystem record increased to $4.830 trillion (Q2 2026 avg)
Fedwire subsystem record changed from $4.593 trillion (2025 avg) (as of 2025-12-31) to $4.830 trillion (Q2 2026 avg) (as of 2026-06-30). Recorded by ClearingPost from automated source verification on 2026-07-30.
SourceMar 10, 2025
Fedwire ISO 20022 big-bang cutover
Federal Reserve completed the single-day cutover of Fedwire Funds Service from proprietary format to ISO 20022 messaging on March 10, 2025.
SourceIntelligence (34)
NewsJul 13, 2026
Circle Receives First OCC National Trust Bank Charter Under GENIUS Act Framework
Circle National Trust will initially offer fiduciary digital asset custody for Circle and its affiliates. The charter enables future management of the USDC reserve under direct OCC supervision.
RegulationJul 10, 2026
US Agencies Set to Miss GENIUS Act July 18 Statutory Deadline for Stablecoin Rules
The Act defaults to its eighteen-month backstop, making January 18, 2027 the effective date regardless of rulemaking progress.
RegulationJul 8, 2026
OCC Proposes Weekly and Quarterly Reporting Forms for Stablecoin Issuers Under GENIUS Act
The Office of the Comptroller of the Currency published proposed reporting forms on June 11, requiring permitted stablecoin issuers to submit weekly activity and reserve data and quarterly condition reports under the GENIUS Act framework with a 60-day comment period.
RegulationJul 4, 2026
GENIUS Act Faces Certain Deadline Miss as NCUA Comment Period Closes Day Before July 18 Cutoff
No federal agency has published final GENIUS Act stablecoin regulations with 14 days remaining until the statutory July 18, 2026 deadline. The NCUA's operational standards comment period does not close until July 17, making timely completion of all six rulemaking tracks impossible and triggering the Act's fallback effective date of January 18, 2027.
RegulationJul 2, 2026
House Financial Services Committee Debates Fintech Access to Federal Reserve Payment Systems
Stripe Vice Chair Eileen O'Mara testified that current frameworks force payment companies into inappropriate regulatory categories. O'Mara argued that direct Fed access would benefit small businesses through faster settlement.
RegulationJun 30, 2026
No Agency Has Published Final GENIUS Act Rules with 18 Days to Statutory Deadline
The GENIUS Act takes effect on January 18, 2027, regardless of whether agencies meet the July 18 rulemaking deadline. Final rules issued before that date would trigger activation 120 days after publication.
NewsJun 26, 2026
House Financial Services Committee Debates PACE Act to Open Fed Payment Rails to Nonbanks
Representative Young Kim highlighted the legislation as a payments modernization priority at the hearing.
RegulationJun 26, 2026
Federal Agencies Propose Stablecoin Customer Identification Rules Under GENIUS Act
The CIP NPRM is the eleventh rulemaking published under the GENIUS Act since its enactment on July 18, 2025. All eleven remain at the proposed stage.
RegulationJun 19, 2026
Fed Publishes First GENIUS Act Rulemaking as July 18 Deadline Approaches with No Final Regulations
The Federal Reserve Board joined four other agencies on June 18, 2026, to propose customer identification requirements for stablecoin issuers, marking the Fed's first GENIUS Act rulemaking. With the July 18 statutory deadline for final regulations 29 days away and no agency having published any final rule, the Act's fallback effective date of January 18, 2027 is increasingly certain.
AnalysisJun 5, 2026
CHIPS Crosses $2 Trillion in Daily Value as Huntington Joins Network
Huntington National Bank became CHIPS's 43rd direct participant on May 19, 2026, following its merger with Cadence Bank. The network's continuous matching engine now settles payments for 43 clearing members, reducing required prefunding to roughly $96 billion against more than $2 trillion in gross throughput.
Reference Documents (2)
Federal Reserve Operating Circular No. 6 (Fedwire Funds)
Federal Reserve · operating_rules · vJanuary 2026 · Jan 5, 2026
2 versions tracked
CBPR+ Roadmap Beyond November 2025
SWIFT · regulatory_text · vJune 2026 · Nov 15, 2026
2 versions tracked
FedNow ServiceFedNow
Federal Reserve Banks
Real-Time PaymentsRTP
The Clearing House (TCH)
Clearing House Interbank Payments SystemCHIPS
The Clearing House (TCH)
FedACH / ACH NetworkFedACH
Federal Reserve Banks (FedACH), Nacha (network rules)
US Payment Infrastructure OverviewUS Payments
Federal Reserve Banks (Fedwire, FedACH, FedNow), The Clearing House (CHIPS, RTP, EPN)
Zelle P2P NetworkZelle
Early Warning Services, LLC (owned by seven US banks: Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank, Wells Fargo)
Electronic Payments NetworkEPN
The Clearing House (TCH)