International banking relies on messaging systems. Crypto researcher SMQKE (@SMQKEDQG) shared an in-depth explanation illustrating how this messaging standard links directly to XRP.
Every single transfer, settlement, and cross-border transaction relies on a structured instruction to move forward. Because these directions follow a universal standard, Ripple designed its products to match.
The Standard Behind Every Bank Payment
ISO 20022 serves as the worldwide messaging language for payments, foreign exchange, securities, and trade finance. While it does not transfer funds itself, it outlines the details of a transaction, leaving a separate layer to execute the actual movement of value. Separating these two processes is vital to understanding the exact role of XRP.
At the heart of SMQKE’s analysis is the fact that Ripple’s payment solutions operate on ISO 20022 principles, relying on the pacs.008 message structure as a baseline. When a financial institution issues a standard ISO 20022 command, Ripple’s platform processes it. Afterward, XRP handles the value settlement between different currencies within seconds, allowing the destination bank to disburse local funds.
For the visual learners:
How XRP will be used within the ISO 20022 framework
Documented walkthrough. pic.twitter.com/9n3BVwf5UD
— SMQKE (@SMQKEDQG) October 11, 2026
How Ripple Positioned Itself Within the Standard
As an early member of the ISO 20022 standards body, Ripple integrated its technology directly with the framework. This early involvement gave Ripple a seat at the table in shaping international payment infrastructure rather than leaving it on the outside. Consequently, banks already utilizing ISO 20022 messaging can direct settlements through Ripple’s network without changing their current systems.
This functionality directly addresses the issue of Nostro accounts. Traditionally, banks must pre-fund foreign currency accounts globally to support cross-border payments. By functioning as a bridge asset, XRP minimizes this necessity. Settlements occur in seconds instead of days, eliminating the need for idle liquidity spread across various currencies and regions.
Standard Chartered Weighs In
Standard Chartered has publicly declared that ISO 20022 “can bridge traditional and decentralized finance.” Within that same framework, XRP is listed as a documented coin provider, marking an instance where a regulated financial institution recognizes the clear link between the ISO 20022 standard and XRP’s function within it.
This forms the core of SMQKE’s argument. The inclusion of XRP is deliberate, demonstrating Ripple’s intentional integration with the standard that dictates global banking communications.
The Regulatory Path
Ripple’s offerings maintain compliance by operating squarely within the established regulatory system rather than alongside it. ISO 20022 supplies the message, while XRP transfers the value. Combined through Ripple’s network, they offer banks a practical method to execute cross-border transactions using a digital asset while staying fully compliant with recognized regulatory frameworks.