- Ripple, Stellar, and IOTA are leading in a push that will pave the way for cryptocurrencies to integrate with SWIFT.
- Their ready-to-use technology for payments, regulatory embrace, and involvement with ISO 20022 paves the way for possible integration with SWIFT.
Three cryptocurrencies are leading the way in the billion-dollar crypto market in integrating SWIFT. The traditional financial sector is increasingly looking to merge with the modernized cryptocurrency market whose influence is increasingly growing.
Ripple, Stellar, and IOTA have made themselves the favorite for the finance sector to work with because of their ready-to-use technology for payments and their efforts to work within the existing regulatory framework. Stellar and IOTA are working towards ISO 20022 which is an ISO standard for electronic data interchange between financial institutions adopted across the world. Ripple has been a member of the body since 2020.
As CNF has reported, Ripple, XLM, and IOTA’s involvement with ISO 20022 paves the way for possible integration with SWIFT.
According to Stephen Lindsay, the business lead for Swift’s strategic platform, the emergence of ISO 20022 has addressed some challenges including inefficiencies and increased costs developed by the old format of payment.
When it comes to payments, it’s no different. When money moves across borders, we rarely think about the layers of communication before payment is executed. Over time, formats used for payments messages in different regions have developed idiosyncrasies requiring translation, creating bottlenecks that cause inefficiencies and increased costs.
Why Ripple, Stellar, and IOTA Lead in SWIFT Integration
The three crypto heavyweights are not only paving the way for their regulatory compliance and superior technology. The three have also taken a unique approach to solving real-world problems using their respective technologies.
Ripple has been pushing to succeed as a foremost blockchain payments firm targeting untapped markets such as in the Middle East, South America, and Africa to offer a real-time settlement of international payments. For the most part, this is achieved through strategic partnerships with local firms. The network is bringing financial inclusion in marginalized regions, promoting international settlements with speed and low fees, and facilitating payments.
Stellar on the other hand is looking into similar regions with the aim of banking the unbanked. While Ripple is focused on business-to-business transactions, Stellar solves the primary issues of the unbanked population. Recently, Moneygram executives hailed Stellar as the blockchain for payments.
Finally, IOTA offers a unique solution to the problem of scalability within the industry. Its protocol allows for secure, feeless transactions between devices on the Internet of Things (IoT) paving the way for a new era of machine-to-machine transactions.
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