XRP News Today: Ripple's XRP Approved for ISO 20022 Integration with SWIFT

An official change request, submitted by The Mojaloop Foundation for Payments and Clearing Settlement, has been approved on the ISO 20022 website. This approval, which occurred in late 2024, proposes an implementation that references Ripple’s Interledger Protocol (ILP). The ILP is designed to enable seamless, cross-network payments, which could significantly benefit XRP in the coming months.

This development was highlighted by crypto researcher SMQKE, who published a short video and several images on X. The documentation accompanying SMQKE’s post underscores that the Interledger Protocol is not just a theoretical framework but is already functioning and integrated with Ripple’s existing infrastructure. This integration is crucial as it utilizes XRP in the process of value movement, offering significant potential to modernize global remittance and settlement systems.

The functionality of the ILP becomes especially relevant in its universal mode, where transactions can occur between untrusted connectors. This bypasses the need for notaries by using XRP as a bridging asset. The ILP system relies on the XRP Ledger (XRPL) for final settlement, with all claims ultimately recorded and redeemed on the XRPL. This integration positions Ripple’s infrastructure as interoperable with the widely used messaging standard, ISO 20022, which is a global foundation for financial messaging, particularly within systems like SWIFT.

SWIFT has confirmed full migration to the ISO 20022 standard by November. Ripple’s payment system is ISO 20022 compliant, and this integration of ILP into the system paves the way for potential XRP adoption in SWIFT’s ecosystem. This approval is significant as it marks a pivotal moment in the evolution of international payment systems, underscoring the growing acceptance of digital assets in traditional financial infrastructure.

The integration of XRP into the SWIFT network is a strategic move that aligns with Ripple's vision of creating a more efficient and inclusive global financial system. XRP, known for its speed and scalability, is well-suited to facilitate real-time global payments. Banks and financial institutions can source liquidity through XRP, enabling faster and more cost-effective cross-border transactions. This development is particularly beneficial for regions with limited access to traditional banking services, as it provides an alternative means of transferring funds quickly and securely.

The approval process also highlights the growing institutional adoption of XRP. Major players in the financial sector are increasingly recognizing the potential of digital assets to revolutionize traditional financial systems. The integration of XRP into the SWIFT network is a testament to its reliability and efficiency, further cementing its position as a leading digital asset for payments.

Moreover, the approval process is expected to have a positive impact on the broader cryptocurrency market. As more traditional financial institutions embrace digital assets, it paves the way for greater acceptance and integration of cryptocurrencies into mainstream finance. This development is likely to attract more investors and users to the cryptocurrency space, driving further innovation and growth.

In conclusion, the quiet initiation of the approval process for Ripple's XRP by SWIFT is a significant milestone in the evolution of international payment systems. It underscores the growing acceptance of digital assets in traditional finance and highlights the potential of XRP to revolutionize cross-border transactions. As more institutions adopt XRP, it is poised to play a crucial role in shaping the future of global finance.