XRP Remains Stable After ISO 20022 Activation, Says Industry Expert

On November 22, SWIFT successfully transitioned to the new ISO 20022 standard, concluding its coexistence with the previous MT message formats. Financial institutions around the globe are now utilizing this updated standard for cross-border payment instructions. Interestingly, this transition did not lead to any noticeable changes in the usage of the XRP Ledger (XRPL).

Key Takeaways

SWIFT transitioned to ISO 20022 on November 22, but XRP usage remains unchanged.
XRPL's transaction throughput has stayed steady at around 22 transactions per second.
The activation dispels misconceptions regarding XRP's connection to ISO 20022.
ISO 20022 functions as a messaging protocol, not a settlement layer for digital assets.
Ripple's XRP has no built-in link to ISO 20022, with each system operating on different layers.
The transition does not automatically drive demand for specific digital assets, including XRP.

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No Change in XRPL Activity Post ISO 20022 Launch

According to Vet, an XRPL validator and developer, the transaction throughput has remained steady at approximately 22 transactions per second since the activation. Data indicates that there has been no surge in ledger activity or liquidity flows in response to the rollout of this messaging standard.

Matt Hamilton, a former developer at Ripple, shared his insights on social media platform X regarding the situation. He emphasized that the activation has finally dispelled misconceptions that have persisted for years about the relationship between XRP and ISO 20022. He noted that those who previously championed this narrative are likely to adopt new theories.

Understanding ISO 20022's Distinct Role

It is important to clarify that ISO 20022 serves as a messaging protocol for financial institutions, rather than a settlement layer for digital assets. This standard enables banks to exchange more detailed payment data while improving compliance tracking and automation capabilities.

Ripple's Chief Technology Officer has explicitly stated that there is no inherent connection between XRP and ISO 20022. The two systems operate on different layers of the payment infrastructure. Any digital asset can potentially integrate with ISO 20022 compliant systems, but the standard does not require the use of cryptocurrencies.

This transition impacts how banks format and deliver payment instructions. SWIFT has advised its members against sending messages during the cutover period to avoid any processing errors. While the upgrade aims to enhance the global banking infrastructure, it does not inherently increase the demand for any particular digital asset.

The development of XRPL continues to be driven by its own technical capabilities and the expansion of its ecosystem, independent of external banking standards. The activation of ISO 20022 underscores that the earlier expectations of automatic XRP adoption by institutions were based on misunderstandings regarding the functionality of the standard.