The Federal Reserve (Fed) announced the adoption of the ISO 20022 standard in its real-time gross settlement system, Fedwire, effective July 14, 2025.
Introduction to the New Standard
The ISO 20022 standard ensures global payment consistency by transmitting financial messages with enriched data fields. The adoption of this standard in Fedwire is expected to significantly reduce transfer times to mere seconds, addressing the demand for more secure and traceable transactions.
Impact on Alternative Coins
With the implementation of ISO 20022, altcoins such as XRP, Cardano, and Stellar are emerging as frontrunners in establishing a modern banking infrastructure. XRP has been used for instant fund transfers through its On-Demand Liquidity model. An increase in wallet openings and transaction volumes has been reported since Fedwire's transition to the new standard.
Prospects for Financial Institutions
Financial institutions seeking to adopt ISO 20022 may look towards altcoins that are already compliant with this standard. This could lead to a closer integration between traditional finance and decentralized systems, resulting in more sustainable liquidity across markets.
The application of the ISO 20022 standard by the Federal Reserve opens new horizons for financial transactions, providing higher speed and transparency while strengthening the position of altcoins in modern financial systems.
