FedNow vs RTP vs Stablecoins — How to Pick the Right Rail for the Right Flow
- Marcia Klingensmith
- Oct 1
- 2 min read
Boards want clarity. Regulators are drawing new lines. And fintech competitors aren’t waiting — they’re already monetizing flows.
Should we be investing in FedNow, RTP, or stablecoins?” This FedNow vs RTP vs Stablecoins debate is showing up in boardrooms across the industry.
The truth is, there isn’t one “winner” rail. Each has its strengths. The challenge for banks and fintechs is to match the rail to the flow — and to do it in a way that accelerates revenue without creating new risks.
FedNow vs RTP vs Stablecoins: The Four Factors of Rail Fit
When we sit down with executive teams, we frame every rail decision around four factors:
Speed – How quickly do funds need to move? Instant rails like FedNow, RTP, Pix, and UPI deliver true 24/7 settlement. Stablecoins are also near-instant, though network traffic can sometimes affect timing.
Settlement Finality – Instant rails provide irrevocable settlement. Stablecoins depend on issuer reserves and redemption quality. New rules like the U.S. GENIUS Act are tightening guardrails here.
Liquidity Management – Instant rails require pre-funded positions or intraday liquidity sweeps. Stablecoin issuers, by contrast, hold large amounts of U.S. Treasuries — now more than some mid-sized countries. This dynamic helps in normal times but can ripple through funding markets during redemptions.
Cross-Border Capability – Most instant rails remain domestic. BIS pilots like Nexus are exploring international links, but stablecoins already operate globally. Banks are also testing tokenized deposits — regulated bank money that moves with the programmability of stablecoins.
Each rail stacks up differently against these factors - and that’s why the FedNow vs RTP vs Stablecoins conversation can’t be answered with a single “winner.” It’s about rail fit, not rail wars.
👉 The key insight: It’s not about which rail wins. It’s about which rail fits the flow in front of you.
A Real-World Example
Consider Maria, who works two jobs in Atlanta and sends $200 a week to her mother in Guatemala. For years, she paid nearly 12% in fees and her mother waited days for funds to arrive.
Today, Maria uses USDC through a remittance app. She buys USDC in the U.S., sends it instantly, and her mother cashes out the same day through a local fintech partner. The cost? Less than a dollar.
Stablecoins aren’t “future rails.” They’re already inclusion rails.
Where to Go from Here
The Maria story is just one piece of the puzzle. In our full Rail Fit Playbook, we also explore:
How gig workers in Mexico are being paid faster and more predictably
Why enterprise trade (think Panama Canal) is piloting programmable payments
How tokenized deposits give banks a competitive answer to stablecoins
The three Horizons of rail adoption (Now, Next, Future) that every board should understand
Read the Full Rail Fit Playbook
For the complete framework, use cases, and adoption roadmap, read the full article on Substack:👉 FedNow, RTP, or Stablecoins? The Rail Fit Playbook
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