- XRP is expected to greatly benefit from the broad migration to the ISO 20022 standard alongside eight other crypto coins.
- Ripple CTO David Schwartz has clarified that the potential impact on the price would be minimal since they are entirely two different things.
Payment Market infrastructures (PMIs) of all major currencies would either go live or are in the process of going live on the ISO 20022 system by November 2025.
According to experts, this would redefine the global financial system and enable seamless interoperability between financial institutions, market infrastructures, and the Banks’ customers. Fascinatingly, this transition would have a larger impact on the broader financial ecosystem with XRP expected to benefit greatly.
How XRP Could Benefit from this Transition
According to reports, this initiative would ensure “rich” structured party data and increased field size to provide a considerable level of transparency and efficiency. Per our investigation, this would be achieved by reducing delays caused by unstructured, incomplete, or inconsistent data. In this case, friction will be less in XRP’s cross-border payment, encouraging faster and more efficient transfers.
The ISO 20022 would also ensure the maintenance of a dedicated reference field to prevent any modification in its end-to-end payment journey. Also, there would be a greater message harmonization across the payment industry. This implies that there would be a universal message type for all payments to enable the integration of many more schemes.
Based on its focus on structured data, institutional investors would be significantly enticed, reduce compliance risk, and enable higher levels of transparency. According to analysts, adhering to this standard not only simplifies fund transfers by XRP but also makes it more appealing to banks seeking a cost-effective and efficient remittance solution.
It is important to note that RippleNet integrated the ISO 20022 standard in 2020 as part of the effort to provide services that align with contemporary banking needs. Fascinatingly, the recent sentiment around the broad transition has called for the need to explore how the XRP price could be impacted. According to Ripple’s Chief Technology Officer David Schwartz, the impact would be minimal since ISO 20022 is a messaging standard and XRP operates as a crypto.
Projects and Countries Heavily Attached to the ISO 20022 Standard
Our research shows that nine crypto coins have so far been certified as ISO 20022-compliant – Quant (QNT), Ripple (XRP), Cardano (ADA), Stellar Lumens (XLM), Hedera (HBAR), IOTA (MIOTA), XDC Network (XDC), Algorand (ALGO), and Verge (XVG).
CNF also disclosed earlier that 72% of institutions connected to SWIFT could soon switch to ISO 20022. On top of that, more than 70 countries, which include Japan, Switzerland, China, and India, are willing to adopt the system in their payment infrastructures.
According to Wells Fargo Bank’s Head of Payments & Liquidity Management for Financial Institutions Michael Knorr, this standard would present numerous benefits to direct members and related individuals.
By unifying messaging standards across HPVs, participants in the payment system will be able to benefit from efficiencies and lay the groundwork for new services.
Meanwhile, XRP is still struggling to maintain its momentum as it plunges below $0.53 after declining by 0.29% and 0.76% in the last 24 hours and the last seven days, respectively.
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