XRP News Today: Federal Reserve Adopts ISO 20022 Boosting Ripple’s Position

The U.S. Federal Reserve has officially transitioned its FedWire Funds Service to the ISO 20022 messaging standard, a move that could significantly benefit Ripple, which has been ISO 20022-ready for years. Effective from July 14, 2025, all institutions using the FedWire Funds Service are now required to process transactions using ISO 20022. This transition, originally scheduled for March 2025 but postponed to provide additional preparation time, marks a critical step in modernizing the U.S. financial system.

ISO 20022 is a globally adopted framework for electronic data exchange between financial institutions. It provides standardized formats that support detailed and structured messaging. This not only enhances data clarity but also streamlines transaction processing, reduces errors, and strengthens regulatory compliance, especially for cross-border payments. By the end of 2025, projections suggest that over 80% of international financial flows will utilize ISO 20022. As adoption accelerates worldwide, it is quickly becoming the default protocol across the banking and payments industry.

Ripple positioned itself early to capitalize on the global shift to ISO 20022. In 2020, it became the first blockchain company to join the ISO 20022 Standards Body. Since then, Ripple has aligned its infrastructure, particularly RippleNet, to meet the standard’s requirements. RippleNet supports structured financial messaging in accordance with ISO 20022, enabling seamless integration with traditional banks and financial entities that rely on the same format. This compliance enhances the platform’s speed, transparency, and interoperability, critical features for modern financial institutions.

Although XRP, Ripple’s native cryptocurrency, is not an ISO 20022 messaging token, it remains integral to RippleNet’s operations. XRP is primarily used in Ripple’s On-Demand Liquidity (ODL) service, now known as Ripple Payments, which facilitates instant currency conversion and settlement, eliminating the need for pre-funded accounts.

The Federal Reserve’s adoption of ISO 20022 could increase demand for payment infrastructure that already supports the standard. Ripple, having implemented ISO 20022-compliant messaging well in advance, is well-positioned to assist U.S. financial institutions through this transition. In addition to its technical readiness, Ripple is actively expanding its presence in the American financial landscape. The company recently applied for a U.S. banking license and a Federal Reserve master account for RLUSD, Ripple’s upcoming stablecoin. These developments suggest Ripple is working to deepen its involvement in the domestic banking sector.

As more U.S. banks seek partners that can meet ISO 20022 standards, Ripple’s early adoption and proven infrastructure could prove advantageous, potentially driving greater adoption of its services across the regulated financial ecosystem. This strategic move by the Federal Reserve aligns with Ripple’s long-term vision of integrating blockchain technology with traditional financial systems, paving the way for more efficient and transparent cross-border payments.