Cross-border payments network Ripple (XRP) announced that it has become part of the ISO 20022 Standards Body, becoming its first member focused on distributed ledger technology (DLT). The new payment messaging standard is set to replace SWIFT MT messages as the standard format for cross-border and high-value payments.
Ripple becomes the first blockchain company to join new global payments standard
Ripple has been making huge strides in conquering the cross-border payments industry in the past couple of years. The latest step the company has made in becoming a staple payment provider has been joining the ISO 20022 Standards Body.
In the official announcement, the company said that it has become the first member of the ISO 20022 Standards Body focused on distributed ledger technology (DLT). Ripple said that joining the standards body will enable the company to achieve the next step in global interoperability and meet the evolving needs of its customers.
The ISO 20022 membership will allow customers to utilize RippleNet to access a network of global financial institutions, connect to one standardized API for all counterparty connections, and simplify implementation and reduce operational overhead.
Over 300 financial institutions currently rely on Ripple’s global payments network, including MUFG, SCB, and Santander.
Transforming the payments industry with ISO 20022
The migration to ISO 20022, the new payment messaging standard, is set to have a profound effect on payments. According to Global Banking and Finance, the migration to the new standard will require significant efforts both from banks and their clients as it is set to replace SWIFT MT messages as the standard messaging format for the transfer of cross-border and high-value payments.
Nobuo Ando, the representative director at SBI Remit, one of Ripple’s biggest customers, said that the company’s duty was to search for technological solutions to deliver remittance services to their customers. He said in Ripple’s announcement:
“With the steady rise of remittance flows, we see Ripple helping us open up new revenue potential and a better overall experience for our customers.”
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