- RippleNet expands as Fedwire adopts ISO 20022 messaging standard.
- XRP utility increases with global payment systems becoming interoperable.
- U.S. joins modern financial rails, boosting RippleNet network growth.
The XRP community turned its attention to a significant development as ISO 20022 went live on July 14 through the U.S. Fedwire Funds Service. This upgrade represents a key shift in financial infrastructure, aligning the U.S. with global standards used by Europe and SWIFT.
According to updates shared by pseudonymous XRP community member @589CTO, ISO 20022 is not a cryptocurrency or blockchain technology. It is an international messaging format that allows banks and financial institutions to exchange information in a structured and detailed data format.
This upgrade enables enhanced transparency, accuracy, and timely processing of financial information. Abandoning the legacy systems will lead the U.S. toward a more consolidated financial network.
These new standards are now supported in Fedwire, where trillions of dollars are settled daily. The transition provides an opportunity for institutions to establish interactions with other ISO 20022-compliant systems globally.
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Here’s How the ISO 20022 Upgrade Benefits XRP
RippleNet, Ripple’s enterprise payment network, was designed with ISO 20022 integration in mind. Its compatibility allows for seamless communication with newly upgraded systems like Fedwire.
This position of RippleNet is to offer improved interoperability and easier onboarding for financial institutions. Since RippleNet is ISO-ready, banks could use it without having to switch to another structure.
Although XRP does not conform directly to ISO 20022, it features prominently as a bridge currency in RippleNet. It assists in transferring liquidity between various fiat currencies in real time.
This structure is also beneficial to XRP as it will increase utility for the token. Also, with more banks using RippleNet, there will be an increased demand for XRP in cross-border payments which could boost its market standing.
RippleNet’s Expansion Opens New Payment Corridors
The shift to ISO 20022 enables RippleNet to connect with more banking and payment systems globally. Each new corridor adds utility for XRP by allowing its use as a liquidity tool in more regions.
Banks on RippleNet can transmit payments quickly and at reduced expenses, which enhances the network’s attractiveness and increases XRP’s topicality.
According to @589CTO, much of the confusion online stems from misleading claims that XRP itself is ISO 20022 compliant. In reality, RippleNet, the messaging infrastructure, is the only one that complies with the new standard.
XRP remains the digital currency that exists in that system to support the quick transfer of funds. The increasing influence it has is concerning the extent to which RippleNet is being implemented in financial ecosystems.
Conclusion
With ISO 20022 now active on the U.S. Fedwire system, RippleNet is strategically positioned to grow its institutional partnerships. This expansion naturally increases the scope and use of XRP in the global payments landscape.
As more banks shift to modern infrastructure, RippleNet and XRP may see wider application. Their role in real-time settlements is likely to gain more recognition in the evolving financial environment.
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