The financial landscape in which we operate is changing rapidly. ISO 20022, a new global messaging standard, is set to take the stage and replace older formats such as SWIFT MT. This transition is changing the relationships and communications between financial institutions and payment networks. Perhaps more importantly, it is behind the maturation of certain cryptocurrency projects. ISO 20022 messaging is rich, structured and standardised, allowing detailed inclusion of regulatory and compliance information. A number of digital assets are already following this standard. They recognize the importance of remaining relevant and maintaining compatibility in our nation’s rapidly evolving financial ecosystem.
ISO 20022 adds new clarity and context to transaction metadata, increasing transparency and making reconciliation easier across financial transactions. Using its rich payment data, the standard focuses on interoperability. This compatibility is massively important for cryptocurrencies looking to bridge the gap between crypto and the traditional financial system.
Ripple, the company behind XRP, showed impressive early foresight when they became a member of the ISO 20022 standards body in May 2020. RippleNet was one of the first to adopt the ISO 20022 format. XRP was built specifically to be interoperable with the ISO 20022 standard. This is because it can accommodate transactions in as little as 3-5 seconds. Furthermore, it does so at a very low cost, making it an ideal payment and remittance solution for both large and small transactions.
"What did $XRP prioritize before any other crypto and processes over $434,000,000,000 each day? ISO 20022 —few people understand how important this is.” - Austin King, Omni Network co-founder
Stellar is another cryptocurrency that goes hand in hand with ISO 20022 messaging standards, making it easier for integration with banks and other legacy systems. In similar fashion, Algorand (ALGO), another Layer-1 blockchain, is proud of its support for ISO 20022. And now Quant (QNT) has launched Quant Flow. This powerful payment orchestration tool helps accelerate the speed of innovation and automates the creation of compliant workflows that embrace ISO 20022.
Among peers utilizing the ISO 20022 framework, IOTA presents as a compelling option. Second, it provides for remarkable new opportunities for engagement with the private sector and central banks. As Ripple is currently experiencing through its legal battle with the SEC, alignment with ISO 20022 is no shield against the full force of regulatory actions and oversight.
"Choose projects that build real bridges, not just throw buzzwords around, trying to attract investors who don’t know any better." - 99bitcoins.com
