BP Ventures, a blockchain consulting and services firm, has announced the completion of ISO 20022 on the Stellar Blockchain. ISO 20022 is a standard that seeks to standardize data transfers between financial institutions across the globe for different kinds of electronic payments. In addition to payment settlements, the standard is also used to settle stocks and other securities. Real-time clearing systems such as SWIFT, SEPA in Europe, Faster Payments in the UK, etc. are already using the standard.
Through the implementation of the ISO 20022 standard on the Stellar blockchain, financial institutions will now have the opportunity to upgrade their infrastructures, which will save them both time and money. It will also help reduce risk and allow companies to cut costs. The benefits of the Stellar blockchain include settlement time of just 5 seconds, low fees, and immediate finality, which will be taken advantage of by payments and other asset transfers. Meanwhile, transactions would be processed simultaneously based on the new ISO 20022 standard put in place.
BP Ventures has a reputation for helping financial institutions improve efficiency, security, and market reach through the integration of blockchain digital asset management solutions into their workflow. According to the organization’s Founder, Anthony Barker, the new integration on the Stellar network makes it possible to improve operational efficiency while achieving compliance with the new standard at the same time. Barker believes that they have implemented the most robust mapping of ISO 20022 XML to date, making it possible for banks and financial institutions everywhere to benefit from Stellar’s blockchain technology and the stablecoin Circle USDC while remaining compliant with ISO standards.
The implementation of the ISO 20022 standard on the Stellar network will enable trillions of dollars worth of financial sector transfers to move to the Stellar blockchain. This will help the financial sector restructure its workflows to reflect ISO 20022 compliance. According to the ISO organization, ISO 20022 would become the universal standard for large or high-value payment systems of all reserve currencies by 2025. The standard is already being used by payment systems in over 70 countries, and estimates show that ISO 20022 supports 80 percent of transaction volume and 87 percent of transaction value globally.
However, the standard is not without its challenges. One of the challenges this standard faces is data accuracy put into proper message transfer. Every character expected to be entered into the financial message should be foolproof and error-free to be in line with the specifications of the standard. This may be validated at both ends of the communication chain, and the slightest error lead to rejection or delay of the transaction. Another challenge is that all data is entered manually, meaning, there are possibilities of human errors.
Nevertheless, the implementation of the ISO 20022 standard on the Stellar blockchain represents a significant milestone in the crypto industry, indicating that blockchain technology is gradually becoming more widely accepted and seeing increased adoption. While the ISO 20022 standard will have no impact on the digital asset market and will not affect any available crypto, banks, and financial institutions will be the sole beneficiaries of the implementation.
Ripple has also joined the ISO 20022 standards body and is working to establish a new data standard for payments between financial institutions. It is interesting to see how these collaborations will shape the financial industry moving forward with more blockchain solutions being introduced to the market.
In conclusion, the implementation of the ISO 20022 standard on the Stellar blockchain will benefit financial institutions and companies alike as it will make it easier and faster for them to transfer funds seamlessly. It will also help reduce costs and mitigate risks. However, stakeholders must ensure that the implementation is transparent and free from errors. The blockchain industry has significantly contributed to making financial services more accessible and efficient, and with more collaborations to come, the future looks bright for the industry.
