ISO 20022 Compliance & Crypto

Greetings Learn2Earn community! With TradFi financial regulatory institutions and flagship Crypto platforms duking it out for clarity, control, and survival - we are going to look into the batch of well-known crypto projects that have made the steps to be compliant in the new age of digital finance, known as ISO 20022 compliant tokens.

What is ISO 20022?

ISO 20022 is an international protocol that provides a secure and standardized way of exchanging financial messages between organizations within the payment industry. The protocol will replace the 50-year-old SWIFT financial messaging system, which banks and other financial institutions use to facilitate global payments.

The standard addresses the need of financial services organizations looking to create a globally accepted messaging language. The language allows them to implement their business processes and collaborate with their partners utilizing one universal platform.

The ISO 20022 crypto-list is a collection of compliant digital coins and tokens that satisfy the standards of the International Organization for Standardization (ISO) standards 20022.

There are many cryptocurrencies that will be integrated into this new financial system, referred to as ISO 20022-compliant cryptocurrencies and there is much speculation these cryptocurrencies will soar in price once the standard is implemented.

Digital Token Identifiers (DTIs) are identifier numbers or symbols that represent digital currencies. The main problem with transacting in digital currencies is that they don’t have identifiers that banks can use to differentiate token transactions. For example, a bank program could easily tell the difference between “USD” and “AUD,” but this is more difficult for “Bitcoin” and “Bitcoin Cash.”

Main Components:

1. Standardized Data Messaging:

ISO 20022-compliant crypto adopts a globally recognized standard for financial messaging, ensuring consistent and structured data communication across the crypto ecosystem.

2. Interoperability:

ISO 20022-compliant crypto enables seamless integration between digital currencies and traditional financial systems, allowing for smooth interoperability and interaction between the two domains.

3. Regulatory Compliance:

By adhering to ISO 20022, crypto transactions align with regulatory frameworks more effectively, facilitating compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements, and enabling efficient reporting and monitoring.

4. Enhanced Efficiency:

ISO 20022-compliant crypto streamlines transaction processing, reducing delays and enhancing overall efficiency through standardized data formats and communication protocols.

5. Global Adoption Potential:

ISO 20022 brings a universal standard to the crypto landscape, fostering global adoption and cooperation, and setting the stage for a harmonized approach to digital currencies on a worldwide scale.

ISO 20022-Compliant Tokens:

1. Quant (QNT): Launched in June 2018, Quant is a powerful over-ledger with the potential to revolutionize global financial networks and systems forever. Its mission is to bridge, communicate and interact with different blockchains and other ISO 20022 networks while retaining operations’ efficiency and level of interoperability.
2. Ripple (XRP): Ripple is a digital asset native to the RippleNet payments network. It aims to provide fast and secure transactions for enterprise customers—the XRP token bridges different currencies, allowing users to transfer money quickly and cheaply.
3. Stellar (XLM): Stellar is a decentralized payment network that enables near-instant and secure cross-border payments. The Stellar Network also supports other operations, such as the transfer of assets between its users.
4. Hedera (HBAR): Hedera is a decentralized public network that provides developers and users access to an immutable, cryptographically secure ledger. HBAR tokens power the network’s consensus mechanism, allowing it to reach finality in as little as 5 seconds.
5. IOTA (MIOTA): IOTA is a decentralized, open-source distributed ledger protocol specializing in transactions between machines in the Internet of Things (IoT). The MIOTA token acts as a currency for transactions on the platform.
6. XDC Network (XDC): XDC Network is a blockchain-based enterprise-grade, open-source blockchain protocol. It allows users to transfer value using XDC tokens. The XDC protocol enables companies and developers to build innovative applications on top of the network.
7. Algorand (ALGO): Algorand is a permissionless, pure proof-of-stake distributed ledger technology that enables users to transfer value quickly and securely. ALGO tokens power the network’s consensus mechanism, allowing it to reach finality in as little as 2 seconds.
8. Cardano (ADA): ADA is the native currency of Cardano, a third-generation, decentralized proof-of-stake (PoS) blockchain platform. Cardano is ranked as the seventh biggest project in terms of market cap and is sometimes referred to as the Ethereum Killer.

What Does This Mean for You?

Picture a world where digital wallets effortlessly communicate with banking systems, where crypto transactions seamlessly integrate with existing payment rails, and where regulatory reporting becomes a breeze.

ISO 20022-compliant crypto paves the way for interoperability and harmonization, erasing the barriers that have hindered the widespread adoption of digital currencies.

ISO (International Organization for Standardization) is a non-governmental global organization based in Geneva, Switzerland. ISO develops international standards for industrial, commercial, and proprietary use. If an ISO standard is established, virtually all financial institutions in the world adopt it. An ISO code for Bitcoin (BTC) for example could facilitate global mainstream adoption more than any other action.

Final Remarks:

ISO 20022 is more advanced than the traditional legacy formats banks use in that it supports more significant data volumes and faster processing rates.

As a result, it is ideal for quick payments, daily liquidity management, compliance checks, and fraud detection and prevention, all demands. Overall, ISO 20022 presents an opportunity and challenge for companies wishing to stay ahead of their peers regarding technology.

About us

Xillion.one - a Web3 Tokenized Incubator that provides every XIL token holder with free tokens of every project it incubates.

We build projects from scratch and create synergy between them. We combine the VC and PE approach to building companies by growing their value and managing investor capital. We simultaneously operate as investors and founders to amplify the results.

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