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What is fedwire

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Fedwire is a real-time gross settlement (RTGS) system operated by the Federal Reserve Banks in the United States. It is used for the electronic transfer of funds between banks and other financial institutions. Here are some key points about Fedwire:

Purpose: Fedwire facilitates the transfer of large sums of money, typically for interbank transactions, including payments for securities, loans, and other financial obligations.
Real-Time Processing: Transactions processed through Fedwire are settled in real-time, meaning that funds are transferred immediately and are available to the receiving institution without delay.
Participants: Only financial institutions that maintain an account with the Federal Reserve can participate in Fedwire. This includes commercial banks, credit unions, and other eligible entities