Which Is ISO 20022? A Guide to ISO 20022 Coins
As the global financial system accelerates its digitization, ISO 20022, as the international standard for electronic data exchange between financial institutions, is becoming the core hub for the integration of traditional banks and blockchain. This standard achieves efficient, transparent, and secure cross-border payments through a unified data format, and it is expected that by November 2025, it will become the payment infrastructure core for over 200 national institutions. Crypto Assets that comply with ISO 20022 are attracting up to 78% of institutional investors to include them in their asset portfolios, thanks to their ability to seamlessly connect with traditional financial systems.
What is ISO 20022? Why has it become the “universal language” of finance?
ISO 20022 is developed by the International Organization for Standardization (ISO) and aims to replace traditional financial messaging systems like SWIFT MT, providing a structured data framework for payments, securities, and trade. Its core value lies in:
- Data richness: Supports metadata such as transaction purpose, invoice number, etc., far exceeding the traditional format’s 140-character limit, enhancing transparency and traceability.
- Global Interoperability: Eliminate the “dialect barrier” between financial institutions, reduce the cross-border payment error rate, and shorten settlement time by 40%.
- Automation Efficiency: Reduce manual intervention and lower operational costs by 25% through machine-readable data structures.
Currently, 72% of banks have completed adaptation to this standard, and full coverage is expected to be achieved by 2025.
8 Major Compliant Tokens in 2025: Technical Positioning and Differentiation Advantages
According to the latest market analysis, the following Crypto Assets have become key entry points for the integration of traditional finance due to their proactive compatibility with the ISO 20022 standard:
| Token | Core Function | Transaction Speed | Integration Level |
|---|---|---|---|
| XRP | Bridge currency for cross-border bank payments | 3 – 5 seconds | Official certification (unique) |
| XLM | Low-cost cross-border remittances and financial inclusion | 4 – 5 seconds | Fully compatible |
| ADA | Scalable smart contracts and government collaboration | 20 – 30 seconds | Advanced integration |
| QNT | Cross-chain interoperability (Overledger technology) | Variable | Enterprise-grade compatibility |
| ALGO | Development of CBDCs and regulated financial assets | 4.5 seconds | Native support |
- XRP: A Compliance Benchmark. As the only token officially certified by ISO, XRP collaborates with over 200 financial institutions worldwide through RippleNet, providing real-time cross-border settlements and processing 1,500 transactions per second (TPS). Institutions such as Santander Bank and American Express have utilized it for liquidity management.
- XLM and ALGO: Efficiency Innovators. Stellar features a built-in decentralized exchange (DEX) that completes the conversion of fiat to Crypto Assets within 5 seconds, helping partners like MoneyGram reduce remittance costs. Algorand, on the other hand, has a high throughput of 10,000 TPS, making it the preferred testing chain for central bank digital currencies (CBDCs).
- QNT and HBAR: Enterprise-level Bridge. Quant’s Overledger technology enables secure communication between public and private chains, promoting the development of CBDCs in multiple countries. Hedera Hashgraph is adopted by Google and IBM, supporting tokenized assets with bank-grade security.
Why Institutions Are Betting on ISO 20022 Tokens? Data Reveals Three Major Drivers
- Market penetration accelerates: Compliant tokens have captured 26.4% of the global digital payment market, with a total market value of $157 billion and an average daily trading volume of $12.3 billion.
- Integration success rate disparity: The success rate of integration with traditional banking systems is as high as 92%, far exceeding the 34% of non-compliant tokens. For example XDC Network By using mixed blockchain technology to optimize trade finance processes, it is employed by multiple multinational banks for letter of credit processing.
- Regulation and Scenario Dividends: Amid the wave of central banks promoting CBDC, ISO 20022 tokens, due to their data auditability, are more likely to meet anti-money laundering (AML) requirements. IOTA, with its zero transaction fees and quantum-resistant encryption features, has been integrated into the EU’s smart city and industrial IoT payment scenarios.
Controversies and Challenges: Who is Excluded from “Orthodoxy”?
Despite the significant advantages, Bitcoin, Ethereum, and Solana Mainstream coins do not comply with the ISO 20022 standard. The reason is:
- Bitcoin is positioned as a peer-to-peer cash system, lacking the metadata standards required by institutions;
- Although Solana supports high TPS, it is not compatible with financial message structures, making it difficult to integrate into banking workflows.
Additionally, there are differences in the industry regarding “official certification”: only XRP is listed as a member of the ISO organization, while other tokens (such as ADA and HBAR) participate indirectly through technical compatibility. Experts point out that actual implementation capabilities (such as Ripple’s banking partnerships and Stellar’s remittance network) hold more long-term value than certification labels.
The future of finance is a silent integration. When the SWIFT system fully transitions to ISO 20022 in 2025, the interoperability dividends of compliant tokens will be completely unleashed. These digital assets, which combine speed, compliance, and financial-grade security, are not just technological products, but a “new lifeblood” that reconstructs the flow of global funds.
