Australian Commonwealth Bank is transitioning cross-border payments to the ISO 20022 Standard, a standard already met by Ripple.
CommBank to begin using XRP standard
Following Ripple, Australia’s largest financial conglomerate, CommBank, also called the CBA, has announced today, November 17, 2022, that it will begin migrating cross-border payments to the ISO 20022 standard this month. According to its latest tweets, CommBank will transition all its payments to the advanced standard by November 2025.
CommBank unveiled its new ISO plans while responding to a comment by a Twitter user requesting updates about the ISO 20022. The Australian banking giant tweeted:
“Hi there. From November 2022, cross-border payments will start to migrate to ISO 20022, with all payments to be made and received using ISO 20022 by November 2025. Cross-border payments will be greatly simplified as a result. ^Delz”.
The XRP standard migration marks a great feat for the tech scene and financial institutions, as it offers new and unmatched possibilities for cross-border transactions. More intriguing is Ripple’s already established use of the XRP standard. Ripple, which uses XRP in its operations and whose RippleNet network was originally designed to comply with ISO 20022, already meets the standard.
ISO 20022, the new breakthrough for financial institutions
ISO 20022 is an international standard for exchanging electronic messages between financial institutions. First introduced in 2004, ISO 20022 was created to give the financial industry a common platform for developing messages using a modelling methodology, a central dictionary, and a set of XML and ASN.
Due to the benefits of the ISO, it is predicted that in the coming years, banks will globally migrate from legacy SWIFT MT financial messaging to the highly structured and data-rich ISO 20022 standard. The flexible framework provides an internationally agreed business message syntax and semantics. It also enables communities and message developers to use the same message structure, form and meaning to relay financial transaction information worldwide.
Earlier this year, Ripple, a leading cryptocurrency exchange, announced its membership of the ISO 20022 Standards Body, becoming a member of the DLT.
“To help enable this next step in global interoperability and meet the evolving needs of our customers, Ripple is now part of the ISO 20022 Standards Body—the first member focused on Distributed Ledger Technology (DLT).”
Ripple wrote.
Apart from Ripple, the only similar company that meets the Standard is Stellar (XLM), which is not surprising given their common origin in the person of Jed McCaleb. Also, CommBank is not the first major Australian bank to take steps toward the new interbank correspondence standard. In March this year, the National Australia Bank (NAB) began to adopt ISO 20022 through RippleNet.
Source: https://crypto.news/commbank-announces-migration-to-xrp-standard-starting-november-2022/