The Federal Reserve's recent proposal to allow U.S. banks and credit unions to use intermediaries through the FedNow Service could challenge XRP's core narrative as a cross-border payments solution. Announced on April 8, the proposal suggests banks could use intermediaries for international transactions while utilizing FedNow for domestic transfers, potentially reducing the need for XRP's bridge asset functionality. This development comes as Swift also advances its payment framework, with over 25 banks committed to faster, more transparent cross-border payments by June. These moves by traditional financial institutions could diminish the scarcity value of XRP's payments thesis, as they address similar pain points XRP was designed to solve. Despite this, XRP futures data indicates continued market interest, with $2.43 billion in open interest, suggesting traders still see potential in XRP's utility. As incumbents modernize their payment systems, XRP faces the challenge of proving its relevance in a landscape where traditional banks are increasingly capable of delivering efficient cross-border solutions. The evolving competitive environment may require XRP to focus on niche roles rather than its broader global payments narrative.