ISO 20022 Integration¶

XDC Network is designed with ISO 20022 compatibility, enabling seamless integration with global financial messaging systems used by banks and financial institutions.

What is ISO 20022?¶

ISO 20022 is the international standard for electronic data interchange between financial institutions. It provides:

Rich Data: Structured, detailed payment information
Global Standard: Adopted by SWIFT, central banks, and payment systems worldwide
Interoperability: Seamless communication across different systems
Future-Ready: Designed for modern financial needs

Why ISO 20022 Matters for Blockchain¶

Traditional Challenge	ISO 20022 + XDC Solution
Limited payment data	Rich, structured message format
Incompatible systems	Universal messaging standard
Manual reconciliation	Automated straight-through processing
Compliance gaps	Complete audit trail

XDC Network ISO 20022 Features¶

Message Compatibility¶

XDC Network supports mapping of key ISO 20022 message types:

Message Type	Description	XDC Support
pacs.008	Customer Credit Transfer	✅
pacs.009	Financial Institution Transfer	✅
camt.053	Bank Statement	✅
pain.001	Payment Initiation	✅
head.001	Business Message Header	✅

Technical Implementation¶

<!-- Example ISO 20022 pacs.008 mapped to XDC transaction -->
<Document xmlns="urn:iso:std:iso:20022:tech:xsd:pacs.008.001.08">
  <FIToFICstmrCdtTrf>
    <GrpHdr>
      <MsgId>XDC-20240127-001</MsgId>
      <CreDtTm>2024-01-27T10:00:00Z</CreDtTm>
      <NbOfTxs>1</NbOfTxs>
      <SttlmInf>
        <SttlmMtd>CLRG</SttlmMtd>
        <ClrSys>
          <Prtry>XDC</Prtry>
        </ClrSys>
      </SttlmInf>
    </GrpHdr>
    <CdtTrfTxInf>
      <PmtId>
        <EndToEndId>E2E-REF-12345</EndToEndId>
        <TxId>xdc7890abcdef1234567890abcdef1234567890ab</TxId>
      </PmtId>
      <IntrBkSttlmAmt Ccy="USD">10000.00</IntrBkSttlmAmt>
    </CdtTrfTxInf>
  </FIToFICstmrCdtTrf>
</Document>

Smart Contract Integration¶

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.19;

contract ISO20022Payment {
    struct PaymentInstruction {
        bytes32 messageId;        // MsgId
        bytes32 endToEndId;       // EndToEndId
        address debtor;           // Dbtr
        address creditor;         // Cdtr
        uint256 amount;           // IntrBkSttlmAmt
        string currency;          // Ccy
        uint256 creationDateTime; // CreDtTm
        bytes32 purposeCode;      // Purp/Cd
    }

    mapping(bytes32 => PaymentInstruction) public payments;
    mapping(bytes32 => bool) public settled;

    event PaymentInitiated(bytes32 indexed messageId, address debtor, address creditor, uint256 amount);
    event PaymentSettled(bytes32 indexed messageId, bytes32 txHash);

    function initiatePayment(
        bytes32 _messageId,
        bytes32 _endToEndId,
        address _creditor,
        uint256 _amount,
        string calldata _currency,
        bytes32 _purposeCode
    ) external payable {
        require(!settled[_messageId], "Payment already exists");
        require(msg.value == _amount, "Amount mismatch");

        payments[_messageId] = PaymentInstruction({
            messageId: _messageId,
            endToEndId: _endToEndId,
            debtor: msg.sender,
            creditor: _creditor,
            amount: _amount,
            currency: _currency,
            creationDateTime: block.timestamp,
            purposeCode: _purposeCode
        });

        emit PaymentInitiated(_messageId, msg.sender, _creditor, _amount);
    }

    function settlePayment(bytes32 _messageId) external {
        PaymentInstruction storage payment = payments[_messageId];
        require(payment.amount > 0, "Payment not found");
        require(!settled[_messageId], "Already settled");

        settled[_messageId] = true;
        payable(payment.creditor).transfer(payment.amount);

        emit PaymentSettled(_messageId, blockhash(block.number - 1));
    }
}

Integration Architecture¶

flowchart LR
    A[Core Banking System] -->|ISO 20022| B[Message Converter]
    B -->|JSON/RPC| C[XDC Smart Contract]
    C -->|Events| D[Event Listener]
    D -->|ISO 20022| E[Reporting System]

    F[SWIFT Network] -->|MT/MX| A

Benefits for Financial Institutions¶

Operational Efficiency¶

Straight-Through Processing: Automated payment flows
Reduced Manual Intervention: Less error-prone operations
Faster Settlement: 2-second finality vs T+2

Compliance & Reporting¶

Complete Audit Trail: Every transaction recorded on-chain
Rich Data: Detailed payment information for compliance
Real-Time Reporting: Instant access to transaction data

Cost Reduction¶

Lower Transaction Costs: Near-zero XDC fees vs traditional fees
Reduced Reconciliation: Automated matching
Eliminated Intermediaries: Direct settlement

Implementation Guide¶

Step 1: Message Mapping¶

Map your existing ISO 20022 messages to XDC transaction format:

const mapISO20022ToXDC = (isoMessage) => {
    return {
        to: isoMessage.CdtTrfTxInf.Cdtr.Id,
        value: parseFloat(isoMessage.CdtTrfTxInf.IntrBkSttlmAmt['#text']),
        data: {
            messageId: isoMessage.GrpHdr.MsgId,
            endToEndId: isoMessage.CdtTrfTxInf.PmtId.EndToEndId,
            currency: isoMessage.CdtTrfTxInf.IntrBkSttlmAmt['@Ccy']
        }
    };
};

Step 2: Deploy Integration Layer¶

Set up middleware to convert between ISO 20022 and XDC:

const express = require('express');
const Xdc3 = require('xdc3');
const xml2js = require('xml2js');

const app = express();
const xdc3 = new Xdc3('https://rpc.xinfin.network');

app.post('/payment', async (req, res) => {
    const isoMessage = await xml2js.parseStringPromise(req.body);
    const xdcTx = mapISO20022ToXDC(isoMessage);

    const receipt = await xdc3.eth.sendTransaction(xdcTx);

    // Generate ISO 20022 confirmation
    const confirmation = generatePacs002(receipt);
    res.send(confirmation);
});

Step 3: Connect to Core Banking¶

Integrate with your core banking system via standard APIs or message queues.