XRP News Today: Ripple’s Interledger Protocol Approved for ISO 20022 Compliance

The ISO 20022 official website has confirmed the approval of a request related to Ripple’s Interledger Protocol (ILP), indicating a potential for interoperability with the SWIFT network. This development was highlighted by crypto researcher SMQKE, sparking discussions about the integration of blockchain technologies with traditional financial systems.

The ISO 20022 messaging standard is a globally recognized framework for financial messaging across various sectors, including banking, securities, payments, and trade services. Managed by the Registration Management Group (RMG) and operated by SWIFT, this standard ensures uniformity and compatibility in data exchanges across the international financial community. The recent listing on the ISO 20022 official site confirms that a registration request linked to Ripple’s Interledger Protocol has been formally approved, marking a significant milestone in Ripple’s pursuit of regulatory-compliant integration into the global financial messaging ecosystem. While this does not confirm full integration, it represents a step towards enhanced interoperability between Ripple’s blockchain solutions and established financial networks.

This approval paves the way for ILP to be used in ISO 20022-compliant environments, including within the SWIFT messaging infrastructure. It also significantly enhances the interoperability of Ripple’s decentralized technology with established banking systems, which have long relied on SWIFT for secure cross-border transactions. Notably, Ripple’s Interledger is not a cryptocurrency in itself but a protocol for value transfer across different payment networks, including digital asset systems and traditional ledgers. Its inclusion signals formal acknowledgment from international financial authorities of Ripple’s technological utility and maturity.

While SWIFT and Ripple have long been portrayed as competitors in the global payments space, recent developments suggest a shift toward strategic complementarity rather than rivalry. The ISO 20022 registration effectively places Ripple’s technology within the standards framework operated by SWIFT, potentially allowing traditional financial institutions using SWIFT to interact seamlessly with Ripple-powered infrastructure. This includes the use of XRP as a bridge asset in On-Demand Liquidity (ODL) corridors, though the ILP’s broader utility extends beyond XRP alone.

What makes this development especially significant is the convergence it represents. SWIFT is amid its transition to ISO 20022-based messaging, with major global banks expected to complete the migration by 2025. The interoperability of Ripple’s protocol within this same framework suggests that banks and financial institutions can explore blockchain-based liquidity solutions without abandoning the systems they already trust and rely on.

The alignment between Ripple’s ILP and ISO 20022 standards holds significant implications for the future of cross-border payments. As financial institutions worldwide transition to ISO 20022, the potential interoperability with Ripple’s blockchain solutions could lead to more efficient, transparent, and cost-effective transactions. This development also positions Ripple as a key player in the modernization of global payment infrastructures, bridging the gap between traditional banking systems and emerging digital technologies.