Ripple Becomes First Distributed Ledger Technology Focused Company to Join ISO 20022
Ripple has officially become the first Distributed Ledger Technology (DLT) to become a member of the ISO 20022 standards body. Ripple has put a particular focus on interoperability between financial institutions is going smoothly.
This new membership will allow Ripple to drive a new standard for data messaging and payments between financial institutions from all over the world. The ISO 20022 global group includes a few central and commercial banks, together with payment processing entities like Visa and SWIFT.
ISO 20022’s International Standards
What ISO 20022 suggests is that there’s a standardized approach when it comes to the process, methodology and repository of enabling interoperability and communication between financial institutions.
Its long-term purpose is to converge into one standard in which all the other legacy standards are sharing information and co-exist.
ISO 20022 takes data points from groups and individual institutions’ models to turn them into a standard format all systems can share. ISO 20022 has already been adopted by 70 countries. It’s estimated to support 87% of all international financial transactions by 2023.
Ripple Customers Have a Say on International Payments
With Ripple now the latest member of the ISO 20022, this indicates that crypto and DLT are being favored and slowly replacing traditional payments. Ripple customers will get to have a say on international payments.
Counterparty connections will be simplified and taking place at lower costs. Ripple is seriously developing on its own as a company, not to mention it lately closed a few other interesting partnerships.
For example, it established a strong presence in Thailand after starting to collaborate with the local fintech DeeMoney. DeeMoney is going to use RippleNet in order to process the payments made between the country’s borders more rapidly and efficiently.
Also, the Europe-based online remittance services firm Azimo closed partnered up with Ripple, in an attempt to leverage the Ripple On-Demand Liquidity (ODL) service for remittance payments in the Philippines. It tries to expand the same service to other countries too.