Investors remain fearful of losing money in the crypto market — it still feels like the Wild West of finance in many regards. That’s why ISO 20022 cryptos compliance is particularly important.
ISO is an acronym for the International Organization for Standardization, which is a non-governmental global organization based in Switzerland. It sets commercial and industrial standards. ISO 20022 specifically is a standard for financial messaging that governs the exchange of financial data. Cryptos that adopt the ISO 20022 standard could soar in price.
Why? Cryptocurrencies that achieve the ISO 20022 standard benefit from a level of trust that the broader crypto market lacks. The list of such firms is currently quite short, and very much worth considering. Here are seven cryptos to watch now.
ISO 20022 Cryptos: Hedera (HBAR-USD)
Hedera (HBAR-USD) is well-known for being an enterprise-first cryptocurrency. It has established itself as a crypto for corporations that are leaning into the adoption of cryptocurrency. The tide slowly but surely continues to turn in that direction, and more corporations are realizing that cryptocurrency is more than a passing fad.
Those firms are also cognizant of the fact that fintech is a burgeoning field underpinned by impressive growth metrics. It’s very much a case of first adopters standing to benefit the most. Thus, Hedera is likely to have a lot of opportunities moving forward.
The fact that HBAR is ISO 20022 compliant is a massive advantage. That designation should allay a lot of fear on its part and that of the consumer. After all, it essentially means HBAR is equivalent to the financial system that they are already familiar with. ISO 20022 compliance makes Hedera one of the easiest choices for investors who want to get ahead of that upswell in enterprise crypto adoption and it’s very inexpensive.
Quant (QNT-USD)
Quant (QNT-USD) is set to grow for a few reasons that crypto investors should not ignore.
First of all, Quant has defined utility as the focus of its development. It is developing interoperability of multiple blockchains. Quant essentially facilitates the development of decentralized applications (Dapps) that connect individual blockchains. So, Quant has utility and that is vitally important these days. Investors have been burnt by meme coins and have understandably grown skeptical. The idea of utility first is catching on, benefiting Quant.
Secondly, Quant is ISO 20022 compliant. That only adds to its overall appeal. It has further distinguished itself from the junk that characterized the first wave of cryptocurrency adoption. It’s another clear signal to the market that Quant is serious about building a network that will create deep value for investors. Investors are going to become increasingly more focused on interoperability as time goes on. Quant is an important part of that conversation and that’s a big part of why it’s highly valued currently.
XRP (XRP-USD)
Investors are understandably confused about XRP (XRP-USD) at the moment. Ripple, the company behind XRP, prevailed in its court battle against the US SEC. It is not a security and thus not subject to the SEC’s purview. That’s a big win for the crypto market overall and Ripple in particular. However, the victory hasn’t propelled XRP prices to new levels as many expected. Instead, it briefly spiked prices which ultimately served to benefit lucky traders. The remaining investors are wondering what to hope for next.
That catalyst could be ISO 20022 compliance. XRP is compliant already. It’s also well-known for its utility in cross-border remittance and allows users to send money quickly and inexpensively. XRP is a better solution to high bank fees for the transfer of one to another and it’s fast. It’s also part of the established global standardized financial system. The US SEC victory hasn’t resulted in sustained higher prices but XRP has strong assets including standardization with which it can market its future growth.
Stellar (XLM-USD)
Stellar (XLM-USD) is pretty similar to Ripple in most regards. Its utility is in cross-border remittances done quickly and cheaply. It is also ISO 20022 compliant. The same general ideas that apply to Ripple and XRP also apply to Stellar and XLM. Utility, ISO compliance, and the opportunity that future standard implementation presented make it valuable.
It’s fair to assert that the financial system of today is becoming more and more open to crypto. Adoption and integration seem like a foregone conclusion at the rate things are going. Stellar isn’t engaged in a particularly exotic business. Cross-border remittance is everyday business and XLM won’t face difficulty for that reason. The traditional financial system understands its business and familiarity breeds acceptance. That makes it highly likely that Stellar will get adopted quickly by the masses. The quicker the company gets the word out about ISO 20022 compliance, the better. Just like XRP, XLM has a valuable marketing asset in that regard.
Cardano (ADA-USD)
It’s unsurprising that Cardano (ADA-USD) is currently ISO 20022 compliant. It is known for its focus on an evidence-based approach to its development. It’s all about following emerging computer science and adopting expert opinions to guide its decision-making process. That drastically increases the odds that Cardano creates a network that produces long-term value while avoiding fatal errors along the way. It is the proverbial tortoise that gets ignored which is why I expect it to gain recognition slowly but steadily.
It adroitly ticked the ISO 20022 compliance box as part of that development. If you’ve been following what Cardano does, that makes sense. It is being developed with the goal of long-term success as the primary purpose. It isn’t some rogue meme coin that has the potential to rise meteorically. That makes it dull to some investors. However, as a result, it is equally unlikely to flame out in dramatic fashion.
Algorand (ALGO-USD)
Algorand (ALGO-USD) is another inexpensive crypto that boasts ISO 20022 compliance. Like all the other cryptos on this list, compliance lends it a distinct advantage in terms of future growth. By 2025, all financial institutions will have to be able to process ISO-compliant payment transactions. That benefits Algorand and every other crypto in this article.
Algorand itself is a blockchain supporting financial and non-financial applications. Developers are building Dapps that facilitate both on its network. Its ISO 20022 compliance means it benefits the financial realm in the same way that all the others here do.
Logically, that could create a sort of virtuous cycle for Algorand: Once the standard is implemented, ALGO will see increased use which will spur its financial Dapp development. In turn, its non-financial Dapp development will see more interest simply because it is part of what the company does. ALGO is among the cheapest cryptos on this list which makes it inherently interesting.
Verge (XVG-USD)
The primary focus of Verge (XVG-USD) is privacy. The crypto emphasizes transactional anonymity by blocking IP addresses and locations. I can see a ton of upside in Verge because it merges the benefits of anonymity with compliance.
Too often, detractors focus on privacy coins as being the playground of criminals. There are many other reasons users want to remain anonymous. However, that argument has been effective and prevented privacy-first cryptos from gaining broader acceptance.
Verge is ISO 20022 compliant. It plays by the rules set out by the current financial system. It’s therefore difficult to argue that Verge is designed with illicit activity in mind.
Here’s the other thing to keep in mind: XVG costs $0.003 right now. It traded for $0.22 back in 2017. There’s obviously no guarantee that it will reach that level again in the future. However, if it does that equates to more than 7,000% returns. It’s entirely possible that XVG could reach that price as a privacy-first, ISO 20022-compliant cryptocurrency.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
