Welcome to the October 2026 Innovating Payments Executive Summary.
In this issue, we’re seeing a ramp up in regulator activity around critical FI compliance topics, including GENIUS Act implementation, third-party risk management guidance, core provider responsibilities, and exam cycles. In addition, Nacha issued a Request for Information (RFI) on secure electronic channels for exception processing.
And faster payments are going global. FedNow® announced plans to enable cross-border capabilities.
In other news, digital assets continue to bubble up in key developments: Fiserv launched its stablecoin system, The Clearing House chose Quant for the infrastructure of its tokenized deposit network, and FinCEN issued an alert around Digital Asset Investment Scam Centers.
Meanwhile, the Independent Community Bankers of America (ICBA) sued the Office of the Comptroller of the Currency (OCC) over National Trust Bank Charters for crypto firms, FedEx Dataworks and Stripe are partnering to offer loans to small-and-medium businesses, and the U.S. Department of the Treasury launched a Quantum-Readiness Task Force.
There’s never a dull moment in payments these days. Read on to learn more about this month’s top stories.
Top Headlines
Federal Reserve Board seeks comment on GENIUS Act parameters
The Federal Reserve Board is seeking input on two proposals related to the GENIUS Act. The first would require that Board-supervised payment stablecoin issuers fully back their stablecoins with certain permissible reserve assets, such as short-term Treasury bills and certain other high-quality, liquid assets. The second would establish a tailored application process for Board-supervised banks applying to issue payment stablecoins.
In an official statement reacting to the proposal, Governor Barr commented, “As I have noted previously, the regulatory framework for stablecoins needs to provide strong guardrails and consumer protections so that new instruments can foster payments improvements that benefit households and businesses. Stablecoins will only be stable if they can be reliably and promptly redeemed at par in a range of conditions.” Read more.
Agencies seek comment on proposed Third-Party Risk Management Guidance and issue statement on community bank engagement with core service providers
The Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, the National Credit Union Administration (NCUA), and the OCC issued proposed guidance to assist financial institutions with managing risks associated with third-party relationships. The proposed guidance is “intended to assist banks and credit unions to better align and tailor their third-party risk management practices to the risks of individual third-party relationships.” Comments are due by November 16.
In addition, at the same time, the agencies issued a statement on community banks’ engagement with core service providers. It concluded, “Because core providers are integral to carrying out the business of banking and the functions of CBOs [community banking organizations], they may be held liable for the practices or violations of a CBO as an institution-affiliated party.” Read more.
Interim Final Rule reduces regulatory burden for community banks and increases the number of banks that qualify for 18-month exam cycle
The Board of Governors of the Federal Reserve System, FDIC, OCC issued an interim final rule increasing the number of community banks eligible for an 18-month exam cycle.
The 21st Century ROAD to Housing Act increased the total asset threshold from $3 billion to $6 billion for certain supervised institutions to qualify for an extended 18-month on-site exam cycle. Extending the exam cycle for these small non-complex firms from 12 months to 18 months appropriately reduces burden, including time and resources spent, for these low-risk institutions. By law, to be eligible for the extended exam cycle, these institutions must meet certain criteria, including that they are considered well managed and well capitalized. Read more.
Federal Reserve
FedNow to enable cross-border payments
FedNow is gearing up to offer cross-border transaction support. According to a news release, the FedNow transaction will cover the U.S. domestic leg of the payment, while the international portion will move through established correspondent banking arrangements.
“Cross-border transaction capabilities will give financial institutions powerful new ways to serve internationally active customers. After several years focused on growing the domestic instant payments market, this is an important first step toward meeting the global needs emerging across our ecosystem,” said Nick Stanescu, chief FedNow executive, in the announcement. Read more.
Nacha
Nacha issues RFI on Secure Electronic Channels for Exception Processing
Nacha has issued an RFI on the use of secure, electronic communication channels for handling ACH exception processing, and whether and how such use should be the required form of exception handling. The feedback received will help determine whether Nacha proposes changes to the Nacha Operating Rules on this topic. Comments are due by Friday, November 20, 2026, and NEACH plans to respond on behalf of its members. Read more.
Digital Assets
Fiserv’s stablecoin system starts
Fiserv has gone live with its digital asset platform, launching the Bank of North Dakota’s Roughrider Coin as its first use case. The Roughrider Coin is a dollar-backed stablecoin designed to enable more efficient money movement across the state’s interbank network. VersaBank serves as issuer, Fireblocks is providing secure digital asset infrastructure and tokenization services, and transactions are processed on the Solana blockchain.
“The launch of our digital asset platform is an important milestone for Fiserv and the financial institutions we serve,” said Sunil Sachdev, Head of Embedded Finance and Digital Assets at Fiserv in a press release. “By moving from concept to production with leading institutions, we are helping clients unlock new efficiencies in banking and payments while maintaining the trust, security and regulatory standards they expect.” Read more.
The Clearing House taps Quant to power tokenized deposits platform
The Clearing House announced the selection of Quant, a leading provider of programmable money infrastructure, to power its On-Chain Money Initiative, a new interoperable payments network that will enable financial institutions of all sizes to clear and settle tokenized deposit transactions.
According to the press release, Quant’s technology will enable the network’s interoperability, orchestration, and transaction-management layer that coordinates the clearing and settlement of tokenized deposit transactions, while providing connectivity to existing fiat payment systems that financial institutions and their customers use every day, including the RTP® and CHIPS® networks.
“This marks a defining step in the global transition to programmable money,” said Gilbert Verdian, Founder and Chief Executive Officer of Quant in the release. Read more.
FinCEN warns of Digital Asset Investment Scam Centers
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an alert to urge financial institutions to be vigilant in detecting, identifying, and reporting suspicious activity connected to the operation of digital asset investment scam centers and the laundering of associated illicit proceeds. The alert calls these scams, “one of the most significant fraud threats to Americans today,” reporting U.S. victim losses of $7.2 billion in 2025. Read more.
Industry News
ICBA sues OCC over National Trust Bank Charters for crypto firms
ICBA has issued a lawsuit against the OCC for “authorizing novel entities primarily dealing in cryptocurrencies to enter the banking system without being subject to the same rigorous regulatory framework or safeguards as community banks.” The lawsuit focuses on the March 2, 2026, final rule related to Interpretive Letter No. 1176, and asks the federal court to find both the final rule and the letter unlawful.
“The OCC's decision to allow companies to obtain national trust bank charters to conduct substantial non-fiduciary activities exceeds the authority Congress granted the agency… ICBA is asking the court to return the OCC to its statutory limits. Any non-fiduciary firm seeking the benefits of a federal bank charter should meet the same standards as community banks,” said ICBA President and CEO Rebeca Romero Rainey in the official press release. Read more.
FedEx Dataworks and Stripe to join forces to reduce friction in global commerce for SMBs
FedEx and Stripe have launched a strategic partnership that will allow them to potentially extend loans to tens of thousands of small-to-medium businesses. FedEx also will begin using Stripe as an option to process payments, adding more than 50 new payment methods to their checkouts through Stripe.
“FedEx and Stripe power the physical and digital foundations of global trade,” said John Collison, co-founder and president of Stripe in the announcement. “Together, we can turn the operational momentum of a small business, like shipping a thousand packages a week, into access to growth finance through Stripe Capital.”
The first joint solution is slated to launch in early 2027. Read more.
U.S. Department of the Treasury launches Quantum-Readiness Task Force
The U.S. Department of the Treasury announced the formation of the Quantum-Readiness Task Force, a public-private initiative to help accelerate the U.S. financial sector’s transition to quantum-safe technology in an orderly and operationally resilient manner. Advancing President Trump’s cyber agenda, the Task Force will support the adoption of post-quantum cryptography and strengthen protections for critical financial infrastructure.
In the announcement, Treasury Assistant Secretary for Financial Institutions Luke Pettit commented, “The Financial Sector Quantum-Readiness Task Force will help ensure that the transition to quantum-safe technology is coordinated, risk-based, and operationally resilient. By bringing together government and industry to lead the transition to quantum-safe finance, the U.S. will strengthen trust in its financial system and reinforce its economic and national security.” Read more.
NEACH
From monitoring new compliance requirements to addressing the growing presence of digital assets, faster payments, quantum finance, and more, there’s much ado about everything for payments professionals.
Join us for NEACH’s Future of Payments Symposium (FPS)*, taking place November 2-3, in Newport, R.I., to cut through the clutter and dive into today’s most relevant topics. Not only will you hear from experts, but you’ll also have a forum to connect with your peers about how they are assessing, strategizing, and managing competing priorities. Register now to ensure you stay on top of the latest shifts in the landscape.
* The 2026 event is sold out.
NEACH - New England Automated Clearing House Association is a neutral, member-focused advocate. Our role is to give you the intelligence, context, and connections you need to make informed strategic decisions. We bring together industry leaders, policymakers, and innovators so you can evaluate innovation through the lens of your institution’s mission and market strategy. For more information, visit neach.org.