Old coins sky-rocketing! After XRP and XLM To The Moon, you must understand what ISO 20022 is.

Image source: DeepTechFlow

This Bull Market rise is a bit uncomfortable, just awarded the title of 'meme Bull Market' in this cycle, not long after, the market is filled with a series of wailing—yes, old players are trapped in the meme again, and the most uncomfortable thing is not being trapped in the meme, but selling the old coins that have been held motionless for many years in order to chase the meme, which has now started pumping like crazy.

Recently, $XRP, $XLM, $HBAR, $XVG, etc. have been appearing on the daily exchange gainers list, all names familiar yet strange to veteran investors. In less than a month, $XRP surged 400%, with a market capitalization surpassing that of $SOL. Fellow investors couldn't help but wonder: what year is it today?

Always been suddenly rising against the 'old garbage' of fear, uncertainty and doubt, although it feels a bit like rotation within the sector, but in essence, it may be another 'value discovery' of the market for these assets.

It goes without saying that Trump's victory has had a positive impact on cryptocurrency. The crazy surge in BTC's price is a clear example. Just one month after the election, BTC successfully broke the $100,000 mark. Trump's friendly stance towards encryption has also prompted Wall Street to reevaluate the broader 'payment attributes' of cryptocurrency. For example, the recent rise of XRP, XLM, and others is not only closely related to the payment field, but also shares a common feature: the concept of 'ISO 20022'.

ISO 20022, the universal language of the financial industry

Is ISO 20022 a sudden new narrative? Not really. In fact, ISO 20022 had a prototype as early as 2004, long before the first BTC was mined.

ISO 20022 (full name: Financial Services - Universal Financial Industry message scheme) is an international financial communication standard developed by ISO (International Organization for Standardization) Technical Committee 68 (Financial Service). After years of development, it has become a unified standard for global financial message delivery, covering multiple financial industries such as payment, securities, trade, cards, and forex.

From a technical perspective, ISO 20022 is:

A globally unified financial communication standard

A standardized data format and rule trap

A framework for financial message delivery

For example, maybe you will understand better.

Assuming you want to transfer 1,000 US dollars to your overseas friend, this money needs to go through multiple rounds of circulation:

Your bank sends payment instructions in its own format

SWIFT wants to translate this instruction into its own format

The intermediary bank may be processed in another format.

The final receiving bank needs to be translated into a format that they can understand again.

Just like playing the game of telephone, with each translation, some information may be lost. In some cases, important information (such as payment purpose and invoice number) may even disappear directly during the translation process. Cross-border payments, seemingly simple, actually require numerous rounds of "translation"—because every Financial Institution speaks its own "dialect".

So, ISO 20022 can be understood as "global financial lingua franca". Just as Mandarin enables people from different regions to communicate with each other, ISO 20022 enables different Financial Institutions around the world to exchange information in the same way.

With ISO 20022, all Financial Institutions speak the same 'language' and the payment information contained in the communication is richer (expanding from the original 140 characters to 9000 characters), the data structure is more standardized (like everyone using the same template), and the processing is more intelligent (machines can read and process directly). Cross-border transfers used to be like sending telegrams in Morse code, but now it's like sending a structured email, which can not only carry attachments but also be automatically classified and processed.

Embrace ISO 20022 cryptocurrency actively

If a Cryptocurrency complies with the ISO 20022 standard, it will be assigned an official ISO code. Financial Institutions can easily use Cryptocurrency for cross-border payments. In addition, regulatory agencies may have more relaxed regulations on ISO20022 Tokens, and Tokens that comply with ISO standards may be widely used, equivalent to being 'incorporated' into the global financial payment system, with legitimate payment purposes.

Image source: DeepTechFlow

Note: The widely circulated system diagram on Twitter is for reference only.

So what are the ISO 20022 concept tokens that are recognized by the market now?

1、XRP (Ripple)

Official certification status: The only Cryptocurrency project to receive official ISO 20022 certification

Implementation:

RippleNet fully integrates the ISO 20022 messaging standard.

Provide real-time gross settlement (RTGS) system

P2P tracking that supports cross-border payments

Establish partnerships with over 200 Financial Institutions

Main Cooperation:

Interoperability testing with SWIFT

Cooperating with multiple Central Banks on CBDC projects

Establish direct payment channels with major banks

2, XLM (Stellar)

Official Certification Status: Unofficial certified member, but technically supports standards

Implementation:

Adopt message formats compatible with ISO 20022

Provide cross-border payment and remittance services

Support asset tokenization

Main Cooperation:

Established a strategic partnership with MoneyGram

Cooperating with more than 350 banks in countries like Argentina

Collaboration with Circle for the issuance of USDC

3, ADA (Cardano)

Official certification status: non-official certified member

Implementation:

Support ISO 20022 through Atala PRISM identity solution.

Implementing standards through academically driven methods

Support smart contracts and tokenization assets

Main Cooperation:

Cooperating with the Ministry of Education of Ethiopia

Established government-level cooperation with multiple African countries

Developing identity verification solutions in collaboration with Financial Institution

4、QNT (Quant)

Official certification status: non-official certified member

Implementation:

Achieve ISO 20022 compatibility through the Overledger platform

Provide Cross-Chain InteractionInteroperability solutions

Support multi-chain CBDC implementation

Main Cooperation:

Establishing a strategic partnership with LCX exchange

Participate in CBDC project development

Collaborating with enterprises and financial institutions to achieve Blockchain Interoperability

5, ALGO (Algorand)

Official certification status: non-official certified member

Implementation:

Support ISO 20022 standard message transmission

Provide high-performance Layer 1 blockchain solutions

Support smart contracts and asset tokenization

Main Cooperation:

Collaborating with multiple CBDC projects

Establish payment network cooperation with Financial Institution

Support Stable Coin issuance and cross-border payments

6. HBAR (Hedera)

Official certification status: non-official certified member

Implementation:

Adopt ISO 20022 compatible message format.

Provide high-throughput decentralized ledger technology

Support smart contracts and Token services

Key features:

Performed outstandingly in implementing the ISO 20022 standard

Provide enterprise-level solutions

Support cross-border payments and Settlement

7、IOTA (MIOTA)

Official certification status: non-official certified member

Implementation:

Supported by Tangle technology to ISO 20022

Focus on IoT payments and data transmission

Provide zero-fee transactions

Main Cooperation:

Cooperate with EU institutions

Participate in smart city projects

Develop IoT payment solution

8、XDC (XDC Network)

Official certification status: non-official certified member

Implementation:

Support for trade finance ISO 20022 standard

Provide enterprise-level blockchain solutions

Support smart contracts and tokenization

Main Cooperation:

Cooperate with the trade finance platform

Support Supply Chain finance

Establish a partnership with Financial Institution

Image source: DeepTechFlow

Is 'orthodoxy' really important?

There have always been two different voices regarding the discussion about ISO 20022. Some insist that only the officially certified XRP is the sole concept coin of ISO 20022; while others point out that ISO 20022 is essentially an open technical standard and there is no such thing as an 'official certification' mechanism. Projects like Ripple, Stellar, Cardano, etc. are just supporting this standard at different technical levels - just like HTTP for the internet.

What is more worth following should be the actual implementation of the project. The officially certified Ripple has indeed made substantial progress in the cross-border payment industry, and similarly, Stellar's cooperation with MoneyGram and the landing of Cardano's project in Africa can be evaluated from a practical application perspective. From this point of view, whether a project is truly "officially certified" does not seem to be necessarily related to the market potential it implies.

So, instead of being entangled in whether a project has received the so-called "official certification", it's better to spend time understanding what problems the project is actually solving, whether the solution is truly feasible, and whether it has a competitive advantage in the current market environment.

After all, facing a long-term narrative, if you invest money with the idea of short-term speculation, what you are more likely to receive is punishment from the market.

Image source: DeepTechFlow

【Disclaimer】There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice. Users should consider whether any opinions, perspectives, or conclusions in this article are suitable for their specific situation. Investing based on this, at your own risk.

This article is authorized for reprint from: "Shenzhen TechFlow"

Original Author: DeepTechFlow

'Old coins skyrocket! After XRP and XLM To The Moon, you must understand what ISO 20022 is.' This article was first published in 'encryption city'.