as crypto regulations begin to take shape
we’re likely to see deeper integrations between traditional finance and the crypto world
while much of the conversation has centered around major players like Ethereum Salana Suie etc
there’s been less talk about the so-called ISO compliant cryptos this messaging standard is
used by Tradfi and it suggests that the cryptos that will get the most integrations are not
necessarily the ones we’ve heard about in the news and that’s why today we’re going to explain
what ISO is why it matters which cryptos support it and what it could mean for this emerging
crypto niche and the crypto market my name is Nick let’s get into it i’ll start by saying that
nothing in this video should be taken as financial or investment advice this is purely for education
and entertainment and is intended to broaden your knowledge of crypto’s latest innovations oh and
um full disclosure some of the Coin Bureau team members do hold some of the cryptos mentioned in
today’s video okay enough jiba jaba let’s dive in now as traditional finance has evolved steps have
been taken to make transactions faster cheaper and more secure an important step towards this
goal is the adoption of the ISO 200022 standard and you’ll note that I’ve just referred to this
as ISO in the introduction as well as for the rest of the script just for brevity sake as noted
in the intro ISO is a global messaging standard for exchanging financial messages between
banks and other financial institutions it was developed by the ISO’s technical committee
for financial services way back in 2004 i mean uh that’s like prehistoric times for crypto users
fyi ISO stands for the International Organization for Standardization which is based in Geneva and
uh yes the letters in that acronym are the wrong way round and there’s an interesting reason for
that as the organization explains on their website quote because international organization
for standardization would have different acronyms in different languages ios in English
IO N in French for organization international denormalization its founders opted for the short
form ISO and the story goes that ISO is derived from the Greek word for ISO meaning equal the
more you know anywh who ISO is essentially a universal rulebook that creates a common language
for financial messaging it standardizes all the different message formats into one unified model
using extensible markup language or XML for short and this makes data processing way easier across
different business models in simple terms it helps different financial institutions around the
world communicate with each other more clearly when exchanging things like payment instructions
transaction details or account information so when you send money from your bank the message that
gets passed along is formatted using ISO ensuring that it’s understood on the other end this
standard is a huge step forward in modernizing digital payments why well uh because it makes data
processing much more streamlined and efficient for instance it supports real-time payment
processing instead of relying on old school end of day batch systems which collect transactions
throughout the day and process them all at once usually after hours by switching to ISO banks
and financial institutions can become much more efficient by automating more of the operations
cutting down on clerical errors and reducing the need for manual data processing it also unlocks
better data analytics which means that banks could potentially create new smarter payment
services for their customers so yeah ISO is a kind of a big deal and if you’re looking to
maximize your intake of crypto alpha then you be wondering if ISO is a standard that’s used by
banks what does this have to do with crypto well uh quite a lot actually and that’s because
ISO will also bring some major advancements to the crypto space and could even help bring
the industry one step closer to the promised land of mass adoption iso opens the door to this
possibility by making it much easier for banks to accept and process crypto transactions which
will in turn make crossber transactions much faster and cheaper it will also allow transacting
between fiat and crypto to become much smoother since both sides will eventually be speaking
the same language if you watched our video on payi you’ll know that this will be the key to
unlocking crypto’s true potential as a digital payments rail and you can learn more about the
payi sector in this video right over here iso will also help to improve the interoperability
between different cryptos and will also benefit cryptos role in the traditional financial sector
and this could lead to a much deeper integration between crypto and legacy systems thereby giving
people much a broader range of financial tools and options but here’s where things get interesting
cryptos that comply with the ISO standard will also be able to receive other ISO codes and this
means that they will be able to work to the same international standards even if the underlying
tech of each crypto is completely different and this kind of compliance could make banks much more
willing to adopt compliant cryptos especially for crossborder payments and not only that but
the built-in reporting features of ISO will also help support crypto exchanges with regulatory
compliance naturally this will help mitigate some of those longstanding concerns around crypto’s
used in illicit finance this will help crypto skeptics to feel much more comfortable with using
crypto for transactions in short ISO makes crypto feel safer and more trustworthy for institutions
regulators and everyday users alike as such this will bring crypto even closer to mainstream
use and adoption from all angles and this could be extremely bullish for the adoption of stable
coins as a payment mechanism and could seriously benefit cryptos that are already geared towards
payments so it all sounds pretty promising and at this point you’re almost certainly curious to know
which cryptos fall into this category well this is where things get a bit tricky and that’s because
technically speaking there aren’t actually any coins or tokens that are ISO 2000022 compliant
at least not yet the reason for this is simple uh for crypto to be ISO compliant it requires
that the project is actually registered with ISO in fact this common misconception is explained
in the FAQs of the standards dedicated website quote “There is a lot of confusion and misleading
information on the web referring to ISO compliant cryptocurrencies but those statements are not
correct the cryptocurrencies are not managed and not registered by ISO the ISO standard managing
digital token identifiers or DTI is ISO 24165 that being said there are a handful of crypto
projects meeting the necessary standards for ISO compliance even if they’re not officially
registered although to be honest it’s a short list at the top of the list we have Ripple’s XRP
which is widely regarded as the most ISO compliant crypto project out there although Ripple CTO has
previously stated that quote XRP has nothing to do with ISO Ripple itself actually became an
official member of the ISO standards body in late 2024 and in turn Ripple leverages XRP as part
of the digital payments protocol which is designed to simplify and improve global transactions
offering banks and financial institutions a modern alternative to the outdated Swift network
which has been used since the 70s another crypto on the list of ISO compliant cryptos is Stella’s
XLM which is often seen as Ripple’s biggest rival and that’s because Stella was founded by Jed Mup
who also co-founded Ripple before splitting off to start stellar building its technology based
on the Ripple protocol like Ripple Stellar is a decentralized payments platform designed for
fast lowcost crossber transactions aiming to promote financial inclusion by connecting banks
payment processors and individual users worldwide while Ripple focuses on institutional payments
Stellar is geared more towards individuals so supporting smaller transactions and the
creation of digital assets through its decentralized exchange it’s especially effective
for remittances and tokenized asset transfers however it’s important to note that neither
Stellar nor the Stella Development Foundation are affiliated with or registered with ISO at least
at the time of shooting so technically speaking neither is compliant with any ISO standard another
ISO compliant cryptocurrency is Cardano’s ADA now Cardano aims to improve on smart contracts from
older blockchains like Ethereum with a focus on scalability and interoperability unfortunately
neither Cardano the Cardano Foundation IOHK nor Emergo are currently affiliated with or
registered with ISO there’s also Hideera’s HBR now unlike traditional blockchains Hideera
uses hashgraph technology to deliver fast secure transactions and support the development of DAPs
across sectors like gaming social networking and of course digital finance as you might have
guessed there are currently no formal links between Hideera or its coordinating entities and
the ISO of course we’d be remiss if we didn’t mention Algoand which aims to create a borderless
economy through its decentralized permissionless public ledger algorand is focused on solving the
so-called blockchain trillemma by delivering speed security and decentralization simultaneously the
last ISO compliance crypto we’ll be mentioning today is XDC network which is designed to support
secure and efficient crossber transactions trade finance and supply chain management it’s built
on Zenfin a hybrid chain combining private and public blockchains again neither Algarand nor
XDC Network are formally ISO compliant but this doesn’t mean they won’t be in the future
and it’s also important to note that this list is not exhaustive we’ll leave links to some handy
resources in the description about these and other ISO cryptos in case you wanted to do some deeper
digging you’re welcome now crypto’s move towards ISO compliance is a fairly recent development
and as such the list of compliant cryptos is likely to grow tradfi’s adoption of crypto and the
competitive nature of the crypto industry suggests that this messaging standard could become a major
focal point for crypto projects everywhere so then which other cryptos could become compliant with
the ISO 200022 standard in the future well perhaps the most obvious one that could join this list is
Ethereum and that’s because while Ethereum isn’t natively compliant with the standard its modular
architecture could allow for ISO messaging to be implemented through one of its bajillion layer 2s
ethereum’s biggest competitor Salana could also become compliant with ISO albeit for different
reasons and that’s because Salana’s speed and low costs already make it an ideal solution
for crossber payments integrating the ISO standard will also help banks and institutions to
leverage its capabilities more importantly crypto projects that prioritize interoperability could
become major players in the financial sector by adopting this standard and that’s just because
ISO is designed with interoperability in mind interoperability cryptos could therefore benefit
from integrating ISO alongside their cryptonnative cross-chain messaging protocols similarly data
infrastructure projects that focus on bridging onchain and off-chain data like uh chain link for
example will likely integrate ISO at some point and that’s simply because it would be required for
them to continue growing as crypto continues to integrate with Tradfi and of course we’d be remiss
not to mention stable coins which may be the most likely candidate for ISO compliance with each
passing day it looks more and more like stable coins will play a critical role in traditional
finance and that’s going to require ISO compliance so as you can see there’s a whole heap of cryptos
that could eventually begin to integrate with traditional financial systems by becoming ISO
compliant and if you’re looking at your favorite cryptos and wondering could my crypto one day
be one of these ISO compliant cryptos well ask yourself these simple questions is this crypto
looking to integrate with or at least interface with the traditional financial system can this
crypto be easily upgraded either by smart contract functionality or by a third-party protocol and
does this crypto have a use case that could be beneficial to banks and other financial
institutions if the answer to any of these questions is a resounding yes then chances are it
could become ISO compliant sooner than you might think but just remember that supporting the ISO
messaging standard and being recognized by ISO are technically two different things now unless
you’ve been living under a rock for the last few months you’ll know that crypto regulations
has been taking major leaps forward lately and this begs the question of what positive crypto
regulations could mean for the ISO compliant cryptos as you’ve probably guessed already
positive crypto regulations could seriously benefit ISO cryptos in a big way in fact they
could be what puts these cryptos on the map for Tradfi and that’s simply because these regulations
will help to legitimize the crypto industry with a regulatory backdrop that doesn’t stifle crypto’s
innovative potential banks governments and large institutions will feel much more confident in
adding crypto to their systems and when you consider that ISO is the standard being used
by the biggest banks in the world you quickly realize that this could bring some serious capital
into these cryptocurrencies cryptocurrencies that are ISO compliant could become the most preferred
candidates for tradition as a result demand for these compliant assets could surge giving cryptos
that are already ISO compliant at the technical level a significant first mover advantage being
plug and play with the traditional financial sector means that they’ll be ready for integration
while others are left scrambling to catch up the ISO registrations can easily be sorted out and of
course as crypto becomes more integrated with the traditional financial sector this will undoubtedly
attract a fresh wave of investors be they retail or institutions and this could cause the prices
of any ISO compliant cryptos to pump in a big way uh since these would be the cryptos with the
highest levels of demand believe it or not but the growing presence of Tradfire in crypto could
end up favoring ISO compliant altcoins over all other cryptos possibly including Bitcoin the catch
is that if ISO compliant cryptos were to surge in demand then chances are we’d see ISO compliant
layer 2 start springing up on Bitcoin the same way they could with Ethereum last but not least
the proliferation of these cryptos in Tradfi would eventually find its way into the operations
of central banks and governments this could result in central banks and governments running
validators on their respective networks to ensure that they remain robust it’s possible that they
could even hold their respective coins or tokens as strategic reserve assets so watch this space
because the more that Tradfi gets involved in crypto the more important Tradfy interoperability
standards like ISO will become uh let’s just hope that the Tradfi giants don’t just opt to launch
their own private and permissioned ISO compliant blockchains instead now if you enjoyed that video
you’ll love our latest one and that you can watch
