Ripple, XLM, and IOTA Pave the Way for SWIFT Integration
• Ripple, XLM, and IOTA have all joined ISO 20022 standards body which could pave the way for possible integration of their digital assets with SWIFT.
• Stephen Lindsay, the business lead for SWIFT’s strategic platform lauded the industry’s collaboration and called for payment standardization as he believes it will bring about better data quality in cross-border payments.
• The introduction of ISO 20022 brings about improved fraud detection, global compatibility between systems, higher levels of resilience and efficiency.
What is ISO 20022?
ISO 20022 is an international standard used to exchange electronic messages between financial institutions. It was introduced to address challenges such as inefficiencies and increased costs developed by the old format for payment. Ripple was among the first digital assets to join this standard when they announced their membership in May 2020. Since then, XLM and IOTA have also become members of this body paving the way for possible SWIFT integration.
The Benefits of Joining ISO 20022
By joining ISO 20022 standards body businesses can benefit from having access to rich data which enables global connectivity and compatibility with virtually all payment systems worldwide. This also offers much higher levels of resilience and efficiency because messages can be re-routed if needed and undergo straight-through processing to overcome outage risks and reduce delays. Furthermore, it provides better data quality than what has ever been present in cross border payments allowing businesses to deploy resources effectively and efficiently.
Stephen Lindsay’s Observation
Stephen Lindsay observed that ISO 20022 messages contain better data quality than what has ever been present in cross-border payment which led him to call for more payment standardization within the industry. He believes this transition will enable global connectivity between different systems while providing improved fraud detection along with relevant products due to its flexible nature that allows it fit any environment in a constantly changing financial world .
Ripple, XLM ,and IOTA have joined forces with other leading companies by joining ISO 20022 standards body which gives them access to a wide range of benefits including improved fraud detection, global compatibility between systems ,higher levels of resilience ,efficiency ,and better data quality . This move could potentially pave the way for a possible integration with SWIFT – one that could revolutionize how we do payments globally.