US Federal Reserve Adopts ISO 20022 Standard for Fedwire, Enhancing Cross-Border Transactions

The US Federal Reserve has officially implemented the ISO 20022 standard for its Fedwire Funds Service, effective July 14. This MOVE modernizes the central bank's real-time gross settlement system, which processes nearly $4.7 trillion in daily payments—many tied to international trade and dollar-denominated transactions.

ISO 20022 introduces richer, structured data to payment messages, enabling faster processing and improved compliance screening. The 20-year-old messaging standard, developed by the Geneva-based International Organization for Standardization, serves as a universal financial language across 70 countries including the eurozone, Canada, and Japan.

After multiple delays for testing and industry preparation, the Fed set July 2025 as the final migration deadline. The adoption promises to streamline regulatory compliance and reduce transactional errors through enhanced data pipelines that transcend jurisdictional boundaries.