Fedwire
69
MENTIONS
31
EPISODES
29
PODCASTS
Search complete. 69 mentions across 31 episodes found for "Fedwire".
Nov 5, 2026
Simon TaylorHOST
Was it a securities transaction? What jurisdiction is it coming from? Who is the counterparty? There's a lot of information that lives in the ISO message that's still incredibly useful, even if I'm using a token for the actual settlement.
Simon TaylorHOST
And Fedwire still exists, and that's not token shit.
Carolyn WeinbergGUEST
Yeah, that's actually totally right.
Carolyn WeinbergGUEST
So as a result, the question becomes less about like tokenized deposits per se, and more about how do you actually leverage the blockchain to enable that, but also make sure that you maintain these really important pieces of information that go alongside blockchain.
Ran GoldiHOST
And actually, that's a point that not a lot of people, I think, appreciate.
Ran GoldiHOST
Like, again, most of these stablecoins that you all are using today, actually, the dollar actually sits at BNY.
Ran GoldiHOST
And, you know, earlier this year, you had this settled, basically, a treasury trade, right? After hours, right? After Fedwire is closed between Ripple and Dreyfus, right? For Open Eden.
Ran GoldiHOST
And And I think it begs the question, but maybe people don't understand this.
Todd HougaardGUEST
And one of the things that I learned that might be interesting to the listeners out there is we started as a country in about 1918, 12 Federal Reserve banks, the Federal Reserve, the Treasury, They all agreed to use a telegraph system where they leased wires from Western Union to communicate about moving money, right? It was a secure way to communicate about moving money with a system and it had to be protected.
Todd HougaardGUEST
Well, the interesting thing coming out of that, that sort of aha, that today is what we call the Fedwire Fund Service.
Mary SchusterHOST
Sure is.
Todd HougaardGUEST
And it was all about a secure way to communicate.
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Gary BarnesGUEST
There's a lot of money that is moving underneath through the banking systems, Fedwire, through securities, through, you know, credit card processes.
Gary BarnesGUEST
You know, all of these underneath systems are automated and they're all moving banks, loaning to banks.
Gary BarnesGUEST
So I said, well, you know, how much money are they moving? And the numbers that was fit back at me, I was like in shock when I heard them because it's in the quadrillions of dollars.
15 MINS LATER
Gary BarnesGUEST
You know, you can argue either way.
Gary BarnesGUEST
You know, we try to stay out of that.
Gary BarnesGUEST
We just said, what's an easier way to do it? What if we can make it simpler? So then the AI finally kicked back and said, you know, underneath the surface economy, there is a lot of money that is moving Underneath through the banking systems, Fedwire, through securities, through, you know, credit card processes, you know, all of these underneath systems are automated and they're all moving banks, loaning to banks.
Gary BarnesGUEST
So I said, well, you know, how much money are they moving? And the numbers that was fit back at me, I was like in shock when I heard them because it's in the five trillions of dollars.
Eric YeungGUEST
So Uncle Sam can come in and say, guess what guys, I don't like you guys.
Eric YeungGUEST
I'm gonna freeze all your collateral, or I'm just gonna ask, you will clear Fedwire and all the other, there are several other locations that do these things, right? Do not clear your collateral for you, your collateral transactions, and we're gonna ban you from SWIFT, okay? So you can't use US dollars internationally.
Eric YeungGUEST
So all this stuff that we're talking about, using gold as a collateral, it has come about from necessity.
Eric YeungGUEST
or survival, okay? Like, I mean...
Alvaro VegaGUEST
Each of them have that independent record of what's happening, what's occurring, who's purchasing, what's the bill, what's the actual asset.
Alvaro VegaGUEST
That's including the custodian, that has the federal reserves within their own books, their own registry, FedWire, Treasury Direct.
Alvaro VegaGUEST
Then you also have the investment manager purchasing that treasury bill.
Alvaro VegaGUEST
And in this example, you have these different ledgers where each of these parties has to maintain the record of what's happening, all of the details behind that transaction independently.
David BeckworthHOST
But there's another story that you bring up in your paper, and this is kind of the central point of your paper.
David BeckworthHOST
And this is the inefficiency of the payment system with Fedwire.
David BeckworthHOST
And you propose a solution.
David BeckworthHOST
So maybe walk us through that story and what your solution is for it.
Darrell DuffieGUEST
David, I'm pleased that you had a look at my paper.
Darrell DuffieGUEST
Well, that's one of the options that I put forward in my paper.
Darrell DuffieGUEST
Should the Fed want to reduce its balance sheet, one of the things that it could do is to add to its largest payment system, which is called Fedwire, a new piece of software, which is known as a liquidity savings mechanism, or LSM.
Darrell DuffieGUEST
This is a piece of software that almost all large developed market central banks have, whether it's the Bank of Canada, Bank of Japan, the Bank of England, the European Central Bank.
Artificial IntelligenceNARRATOR
Settlement.
Artificial IntelligenceNARRATOR
The actual, irrevocable discharge of that monetary obligation through the transfer of central bank reserve balances across a real-time gross settlement, RTGS, ledger, such as the Federal Reserve's Fedwire Fund Service in the United States or the European Central Bank's T2, formerly Target 2, system in the Eurozone.
Artificial IntelligenceNARRATOR
When you initiate a retail transfer over the Automated Clearinghouse ACH network in the United States or the Single Euro Payments Area SEPA network in Europe, you are not directly mutating a central bank ledger.
Artificial IntelligenceNARRATOR
Instead, you are submitting an instruction into a Deferred Net Settlement DNS batch system.
9 MINS LATER
Artificial IntelligenceNARRATOR
If a user sends tokens on Arbitrum to a smart contract vault address or exchange deposit address that only exists at that coordinate on Optimism, the EIP-55 checksum passes flawlessly while the funds are permanently bricked on the wrong chain.
Artificial IntelligenceNARRATOR
Exception Handling Architecture ISO 20022 SWIFT Recalls vs the EVM When an erroneous payment settles in traditional banking, institutions rely on standardized ISO 20022 exception messaging and backed by interbankering fencing agreements and common law unjust enrichment doctrines, whereas the Ethereum virtual machine lacks any protocol-level state reversal instruction once a block achieves finality.
Artificial IntelligenceNARRATOR
People who have never worked inside a bank often ask me, Dora, what actually happens on a corporate wire desk when a treasurer sends 2 million United States dollars or 500,000 euros to the wrong account over an RTGS rail like Fedwire or Swiftware settlement is supposed to be final? The answer is where the architectural gulf between traditional finance and Web3 becomes crystal clear.
Artificial IntelligenceNARRATOR
In banking, we distinguish between settlement finality between two clearing banks and legal, operational finality at the end-user account level.
Dan RomeroGUEST
You can have real-time payments now and wires that can either go with...
Dan RomeroGUEST
Fedwire or the Clearinghouse.
Dan RomeroGUEST
So there's nuance there.
Dan RomeroGUEST
You have card networks, right? And you probably, your customers have a debit card, most likely, and maybe you're even big enough bank to offer credit cards.
8 MINS LATER
Dan RomeroGUEST
Memo fields, built-in compliance policies at the chain level, privacy, that's a whole other area that blockchains traditionally haven't had, right? All of that visibility into stablecoin volumes is a result of blockchains being default public.
Dan RomeroGUEST
which if you think about, that's not how payment networks work.
Dan RomeroGUEST
You can't go see all of the payments that are happening on the Visa network or Fedwire or ACH.
Dan RomeroGUEST
There's a level of privacy that enterprises expect.
Alex ThornGUEST
And I think the audience will know, like, we're very bullish on tokenized securities and stablecoins and RWAs.
Alex ThornGUEST
I do want to, you know, completely rip out Fedwire and replace it with stablecoins.
Alex ThornGUEST
I think it's a much better way to move dollars, for example.
Alex ThornGUEST
It's not that...
Eric WallersteinGUEST
There's a ton of key man risk or key institution risk.
Eric WallersteinGUEST
Between Boney Mellon, DTCC, Fedwire, there's one core pillar of various parts of the U.S. financial system that if it's hacked or if it suffers from something.
Eric WallersteinGUEST
A few years ago, I actually covered this when I was at the Journal.
Eric WallersteinGUEST
ICBC, which is a large Chinese bank, but really small player in the Treasury market, just had a cybersecurity issue.
21 more episodes mention Fedwire.
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