The US Federal Reserve has officially implemented the ISO 20022 for its Fedwire Funds, effective July 14. Fedwire, the central bank’s real-time gross settlement system, processes approximately $4.7 trillion in payments daily. Much of that volume is tied to international trade and financial transactions denominated in US dollars.
Under the ISO 20022 standard, those transactions will carry richer, more structured data for faster processing and improved compliance screening.
US central bank signs off on a two-decade-old messaging standard
Originally introduced more than 20 years ago by the Geneva-based International Organization for Standardization, ISO 20022 was created as a universal financial messaging language. It standardizes electronic data interchange between financial institutions by using a consistent format and vocabulary for payment information.
The standard is currently used by roughly 70 countries worldwide, including the eurozone, Canada, and Japan. The US had delayed its implementation several times, with the Federal Reserve citing the need for testing and industry readiness.
After a 2023 proposal was greenlighted, the Fed set July 14, 2025, as the final deadline for full migration to ISO 20022 for Fedwire participants.
The standard could help banks automate regulatory compliance and reduce errors in transactions by creating a pipeline of detailed payment data beyond their jurisdiction’s borders.
Financial institutions in the US have been working closely with the Federal Reserve and private vendors to upgrade their internal systems as per the standard’s policies. Mihail Duta, a director at financial services software provider Finastra, said the majority of US banks are ready.
“We’ve touched every single customer to ensure that the right software is in place, that they’ve done their testing, that they have everything they need to process,” said Duta, whose company is based in London and operates a US headquarters in Lake Mary, Florida.
Several cryptocurrencies have also aligned with the standard to become more interoperable with traditional financial networks worldwide. Among the digital assets reportedly compliant with ISO 20022 are XRP, Stellar, Cardano, Algorand, Quant, and Hedera.
Cross-border transfer numbers surge in US immigration crackdown
The Federal Reserve’s adoption of ISO 20022 also comes at a time when the volume of cross-border remittances from immigrants in the United States has been climbing up. According to a July 13 Washington Post report, immigrants are sending money to families in Central America. That increase, according to experts, is buoyed by fears around immigration enforcement under President Donald Trump’s administration.
Remittance flows to countries such as El Salvador, Honduras, and Guatemala are increasing because senders are reportedly scared that the United States Immigration and Customs Enforcement could soon restrict immigrants’ ability to send money abroad.
Many are rushing to transfer their savings before potential detentions or deportations prevent them from doing so.
“People who’ve saved up money, who have that money left, don’t want to keep it here,” said Javier Guzman, 43, before wiring $125 to his mother in El Salvador at a remittance center in Wheaton, Maryland. “There’s a fear that they might not be able to access it otherwise.”
Manuel Orozco, who leads the migration, remittances, and development program at the Inter-American Dialogue policy group in Washington, DC, said the immigrants are jittery about their fate in America and would rather bank on sending their earnings back home before being detained.
“If you’re detained, you won’t be able to keep sending money,” Orozco said. “So your only option is to try to send everything you can now.”
According to Orozco, remittances to El Salvador rose by 14%, to Honduras by 20%, and to Guatemala by 21% in Q1 2025, compared to the same period in previous years. The payments have more than doubled over the past decade, from 10% of Central America’s GDP in 2010 to 23% in 2024, Orozco found.
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