๐ To understand Strongholdโs role within the FedNow ecosystem, itโs essential to examine the technical criteria of the On-Behalf-Of (OBO) model:
๐น Agent Entity: Stronghold operates as a payment agent, authorised to move funds on behalf of third parties, in this case, its business clients.
๐น Banking Integration: Through sponsor banks with direct access to the FedNow network, Stronghold can initiate and settle payments in real time.
๐น Contractual Relationship: Each Stronghold client has a formal agreement in place, fulfilling KYC and AML requirements in line with regulatory standards.
๐น Full Traceability: All transactions are recorded, auditable, and linked to a final account, even when initiated by Stronghold as the OBO entity.
๐น API-first Infrastructure: Strongholdโs architecture is built on interoperable APIs, enabling seamless integration with POS systems, e-commerce platforms, and enterprise backends, removing friction between clients and traditional banking rails.
The result, Stronghold fits the OBO model not just in theory, but through mature, operational infrastructure, enabling scalable instant payments for businesses of all sizes.
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