HBAR surges 15% as FedNow support Hedera-based Dropp for real-time transactions HBAR surges 15% as FedNow support Hedera-based Dropp for real-time transactions
Hedera's HBAR token has rallied by more than 15% following the news.
2 min read
Updated: Aug. 14, 2023 at 12:02 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The Federal Reserve FedNow payment system has enabled support for Dropp, a micropayment platform based on Hedera (HBAR) Network, according to available information on its website.
What is Dropp?
Dropp is a payments platform based on Hedera that allows merchants to get paid in digital assets, including HBAR, USD Coin (USDC), and fiat USD. Merchants can earn and keep their income on the platform, while consumers only pay per use without having to share their information.
Due to being powered by Hedera distributed ledger technology, Dropp also supports NFT storage and transfers. Merchants can receive payments without paying high transaction fees, which would be unavoidable with credit card transactions.
The platform already utilizes Automated Clearing House Network (ACH) to fund customers’ wallets and for end-of-day payments to merchants. Through the FedNow Service, Dropp now plans to partner with banks to provide merchants with real-time settlements and enable instant payments at the retail level.
The support will enable Dropp to “provide merchants an innovative option for year-round, end-of-day real-time settlement and instant payment services, providing access to funds directly from customers for large value transactions.” The FedNow website further stated that Dropp would open up a digital economy of micro-purchases.
The FedNow is an instant payment infrastructure launched by the Federal Reserve in June. It allows financial institutions in the U.S. to process transactions 24/7.
HBAR rally
News of the development has pushed the value of Hedera network’s native HBAR token up by roughly 15% in the last 24 hours to $0.06392 as of press time, according to CryptoSlate data.
The surge continues a largely positive month for the blockchain network. Last week, Hedera joined the non-profit organization Blockchain for Europe as part of its effort for a “blockchain-powered future.”
Meanwhile, the network recently celebrated processing 17 billion transactions on its blockchain despite losing access to most services in March after it experienced irregularities with its smart contracts.
Data from Arkhia shows that its total transactions are currently at 17.4 billion, and it has 3.1 million accounts created as of press time.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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The Hedera hashgraph platform provides a new form of distributed consensus; a way for people who don’t know or trust each other to securely collaborate and transact online without the need for a trusted intermediary.
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USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.