A recent post by SMQKE has provided new insights into Ripple's compatibility with the SWIFT system. The focus is on the RippleNet Integration Module and its compatibility with international standards.
Ripple's Integration with SWIFT
Ripple's documentation describes the integration module as a software layer that connects a company's internal systems to RippleNet. Among its features is 'SWIFT messaging interoperability,' indicating that Ripple anticipated the need for banks and financial institutions to link messaging flows between RippleNet and SWIFT.
The Role of ISO 20022 and pacs.008
The adoption of ISO 20022 standards by RippleNet, specifically aligning with pacs.008, is significant. This standard is widely used for cross-border financial transactions, and SWIFT is also transitioning towards its adoption. The consistency of data formats between RippleNet and ISO 20022-compliant institutions simplifies interaction.
Technical Compatibility and Business Collaboration
It is important to distinguish between technical interoperability and business collaboration. Ripple's documentation shows that their network can interact with SWIFT messaging and ISO 20022 formats, but this does not imply the existence of an official commercial partnership. Nevertheless, such compatibility allows financial institutions to transition to blockchain solutions without abandoning existing operations.
The insights regarding Ripple's potential integration with SWIFT emphasize the importance of RippleNet's technical readiness to interact with traditional financial systems. This opens new possibilities for enhancing financial exchange.
