CommBank Leverages Ripple’s XRP For Cross-Border Payments

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Australia’s most prominent financial conglomerate is starting to adopt the ISO 20022 standard and plans to migrate its transaction to it over the three succeeding years. 

Ripple’s native cryptocurrency XRP was created to permit on-the-spot cross-border settlements via the XRP Ledger. In recent news, the Bank of Australia’s most significant economic conglomerate, CommBank, said they might use Ripple’s XRP and the ISO 20022 standard for cross-border payments.

It will begin migrating all cross-border transactions to the XRP standard this month and will complete the migration of all invoices over the next three months. The new message appeared a few days ago after CommBank posted a notice of scheduled maintenance.

CommBank quickly answered a follower’s questions. The individual is curious whether the maintenance was related to the platform’s ISO 20022 upgrade.

To clear things out, CommBank replied to the tweet, “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.”

Ripple has been working with banks to promote faster cross-border payments for some time now. Its blockchain-primarily based RippleNet is well-known and used by over 200 banks and financial institutions worldwide.

RippleNet already corresponds to the ISO 20022 standard, quickly becoming the de facto global standard for virtual payments.

Ripple stated, “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).”

Aside from CommBank, National Australia Bank also adopts ISO 20022 through RippleNet. With Ripple, another blockchain platform called Stellar Lumens is also following the standard.

Thus, there is an excellent possibility for Ripple and Stellar to collaborate on central bank digital currencies (CBDCs). For this context, ISO 20022 is a benchmark or basis for electronic message transfers between various financial companies through the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

Earlier this 2022, a digital payments firm based in Germany, Novatti Group Limited, partnered with Ripple to release the AUDC, which will soon be compatible with Flare and Songbird. The Aurei (AUR) stablecoin is also planned to be added to the XRP ledger. It will be the main reason for the changing winds of digital assets and fiat currency systems interaction. 

According to some analysts, ISO-compliant cryptocurrency will alter the digital asset market. They also think regulators will relax their harsh position on ISO 20022 assets. Starting this month, the European Union will convert to ISO 20022 to facilitate high-value cross-border transactions.

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