On May 12, 2025, Reg-Track made an editorial update to include new subheading.
On Apr. 16, Fed reported on launch dates for program, new features.
Fed reported on currency program, risk mitigation features and $1mn transaction limit.
United States Currency Program (USCP) to produce nonsequential $20 straps.
Also, starting in Jun. FedNow Service participants will have access to new account activity threshold functionality and transaction limit increased from $500k to $1mn.
Currency Program
Reported USCP recently began producing $20 denominations on its new equipment.
Starting in Jun., nonsequential straps of $20 available based on local inventories and distribution schedules; multiyear transition began in 2023, phased in by denomination.
Until the transition ends, both sequential and nonsequential straps should be expected.
In nonsequential straps, the first Federal Reserve note is not expected to have a serial number ending in 01; last note is not expected to have a serial number ending in 00.
New equipment does not produce the star notes that replace imperfect notes in a strap
Traditional note equipment will continue to produce star notes until further notice.
All notes remain legal tender, worth face value regardless of when they were issued.
Risk Mitigation, Transaction Limit
Starting Jun. 24, 2025, FedNow participants will have access to new account activity threshold functionality, and can define value/velocity thresholds per customer segment
FedNow Service transaction limits have also increased from $500,000 to $1 million.
Financial institutions on the FedNow Service can use up to $1mn transaction limit to send higher-value credit transfers, in business, real estate and payroll account funding.
May 2025 Editorial Update
On May 12, 2025, Reg-Track made an editorial update to include new subheading.
