The U.S. Federal Reserve has officially adopted the ISO 20022 standard for its Fedwire Funds Service. This development can significantly affect certain cryptocurrencies that are already compliant with this international standard.
Fedwire and ISO 20022
Fedwire, the real-time gross settlement system, is adopting the ISO 20022 standard to enhance cross-border payments. This implementation, already in operation in multiple countries, should help financial institutions transition to a unified global payments framework and communication language. The standard will take effect for Fedwire on July 14, 2025.
Cryptocurrencies Compliant with the Standard
Several cryptocurrencies, including XRP, Stellar (XLM), Cardano (ADA), and Algorand (ALGO), are already compliant with the ISO 20022 standard. These projects may benefit as leading banks look to embrace blockchain technology. For instance, XRP is well-known for its On-Demand Liquidity platform and numerous banking partnerships.
Market Impact Analysis
The recent news about the ISO 20022 adoption has led to notable price increases for several cryptocurrencies. For example, Algorand's token price rose by 10% in the past 24 hours, extending its weekly gains to over 61%. These changes indicate a growing optimism in the market, which is also reflected in the surge in trading volume.
The adoption of the ISO 20022 standard for Fedwire presents new opportunities for cryptocurrencies. The implementation of modern payment technologies and their compliance with international standards could foster further development of digital assets on the global stage.
