Ripple and its native token XRP could be poised to play a leading role in the ISO 20022-compliant financial messaging networks, a recent claim made by crypto analyst SMQKE. The observations show the fit of Ripple’s design as a close match to the emerging new standard for funds messaging, supported by various independent validations.
SMQKE drew attention to a quote published in Financial IT, stating:
Successful messaging networks depend on standardization, rationalization, and re-usability.
Ripple’s distributed ledger technology and XRP were directly listed as the solutions fulfilling all these requirements. A set of images was added to the paper to describe the ways in which this standard corresponds to Ripple’s infrastructure.
Ripple’s system, with its focus on secure and rapid online transactions, complements the objectives of the ISO 20022 standard of having a common format and exchange of information between banks and fintech platforms. The arguments of SMQKE suggest that compatibility makes XRP uniquely placed to thrive in legacy institutions embracing the ISO standard.
The documents further pointed to a larger trend: the increasing pressure on traditional financial institutions to implement fintech technologies. This shift is being led by the requirement to synchronize across disparate networks that function differently. ISO 20022 acts to bridge this gap by unifying banks, crypto exchanges, and messaging systems into one communication mode.
In this regard, XRP is not alone. The information put forward by SMQKE indicates other cryptos, such as Cardano and Algorand, are starting to function in line with the ISO standard. However, the information put forward by SMQKE makes a strong argument for XRP taking the lead in this development based on the integrative nature of its systems and the documented accordance with the ISO standard.
Another picture put forward by SMQKE illustrated how the adoption of ISO 20022 results in better and clearer transaction information. This development is focused on promoting blockchain assets to be even more trusted and simpler to implement in banks as well as regulated financial institutions.
One consistent issue in the blockchain arena has been a scarcity of interoperability among networks. This has prevented the acceleration of the blockchain towards mainstream finance. SMQKE added a second description clarifying that blockchain still does not have common protocols between platforms to enable standard communication.
To overcome this challenge, international bodies such as the International Organization for Standardization (ISO) and IEEE began developing cross-industry standards. The compatibility of XRP with these implementations qualifies it to be a likely fit for institutional applications, which depend on dependable systems.
The same documentation contended ISO 20022 compliance would not undermine decentralization objectives but would rather scope out digital assets toward larger utility. XRP, in embracing conventional messaging platforms, increases its utility in the real world without sacrificing blockchain foundations.
Disclosure: This article does not represent investment advice. The content and materials featured on this…
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