Although XRP has nothing to do with ISO 20022, the coin could still benefit from Ripple’s involvement in the messaging standard.
The importance of ISO 20022 to the global financial industry cannot be overstated. Financial institutions recognize the importance of the ISO 20022 messaging standard, which is reflected in their compliance rates with the concept.
Financial institutions compliant with ISO 20022 standards
Approximately 72% of the World Bank on the SWIFT network is expected to migrate to the ISO 20022 standard by the November 2025 deadline. Additionally, as part of SWIFT’s ongoing transition, more institutions are expected to be compliant with the messaging standard by 2025.
ISO 20022 is a globally recognized standard for financial messaging, enabling seamless electronic data exchange between financial institutions around the world. In particular, SWIFT aims to replace the current Messaging Standard (MT) with ISO 20022 to drive widespread adoption and compliance among financial institutions.
Ripple becomes part of ISO 20022
Initially, the concept was developed as a messaging standard for traditional financial institutions, but has gradually been extended to the crypto sector as well.
Crypto companies like Ripple have become part of the global messaging standard for financial transactions. The cryptocurrency payment company announced its membership in May 2020.
At the time, Ripple emphasized that its compliance with the ISO 20022 standard will allow RippleNet clients to access the world’s network of financial institutions through a unified API for all counterparty transactions.
Is XRP ISO 20022 compliant?
Ripple’s ISO 20022 compliance has led some community members to speculate that XRP may also be compliant with the messaging standard. Some commentators, including Ben Armstrong (Bitboy), have given XRP the title of “ISO 20022 compliant coin” due to Ripple’s involvement in the concept.
Last month, BitBoy said that the ISO 20022 standard was developed with XRP in mind. However, a prominent XRP community member debunked this claim. They referenced a statement by Ripple CTO David Schwartz denying the relationship between XRP and ISO 20022.
“XRP has nothing to do with ISO 20022,” Schwartz said.
Ripple executives said that while ISO 20022 is a messaging standard for payments, XRP is just a cryptocurrency.
David Schwartz debunks the relationship between XRP and ISO 20022
How XRP will benefit from Ripple’s ISO 20022 compliance
Although XRP is not an ISO 20022 compliant coin, it could benefit from Ripple’s involvement in the messaging standard.
XRP has the potential to be integrated into existing financial systems, especially ISO 20022 compliant banks, which could accelerate adoption of the coin. Interestingly, XRP’s usefulness in cross-border payments may also drive its adoption by ISO 20022-compliant institutions.
For context, XRP facilitates faster and lower-cost cross-border payments through Ripple’s payments solution, On-Demand Liquidity (ODL) (now Ripple Payments). With ODL, XRP acts as a bridge asset between two fiat currencies, eliminating problems associated with traditional cross-border payments, such as high transaction fees and slow processing times.
Since Ripple is an ISO 20022 compliant company, more financial institutions that comply with the messaging standard are likely to adopt XRP for cross-border payments.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
