This article was first published on Insights – Ripple
The modern global supply chain revolutionized the shipping industry by standardizing the way cargo is packaged and transported around the world. This “containerization” drove down the cost of goods and blurred the lines of regional boundaries. Today, cross-border payments are at the cusp of a similar transformation.
Payment protocols and messaging across the world are fragmented and restrictive, due in part to countries and financial networks all adhering to various standards. This results in closed networks that don’t speak to each other, unstructured data and opaque payments that require high manual intervention— resulting in a poor payments experience.
The International Standards Organization (ISO) established a universal standard, ISO 20022 in 2004 to bring legacy payment infrastructures into the modern world and help to enable global interoperability and an improved customer experience. ISO 20022 is steadily becoming the global standard for the world’s cross-border payment flows. Ripple has been a leader in this shift and our network, RippleNet, has been aligned with ISO 20022 standards from the start.
Now, we’re thrilled to share that Ripple is part of the ISO 20022 Registration Management Group (RMG) standards body and the first member focused on Distributed Ledger Technology (DLT). This membership enables us to meet the needs of our 300+ customers by helping define the future direction of cross-border payment standards to evolve the ISO 20022 standard.
Through this membership Ripple is able to contribute our experience and expertise in the application of the ISO 20022 standard to cross-border payments and its use in the DLT data structures in our standardised API. In fact, Ripple and our customers on RippleNet are pioneers using ISO 20022 for cross-border payments—adoption of ISO 20022 for domestic ACH and RTGS payments has become widespread over the past 10 years, but so far its use ...
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Insights – Ripple