Fed Research Validation Confirms XRP, XLM’s Role In Secure Payments

A recent post by crypto researcher SMQKE revisited a lesser-known but significant Federal Reserve research paper that examined Byzantine Fault Tolerant (BFT) consensus mechanisms as part of a broader framework for secure payment systems.

The paper, according to SMQKE, identified BFT-based models as the most efficient and scalable for distributed network operations, highlighting their advantages over mechanisms such as Proof of Work (PoW) and Proof of Stake (PoS).

This validation positioned BFT as the preferred architecture for high-speed and secure transaction processing within financial networks.

SMQKE emphasized that XRP, XLM, and HBAR already employ variations of Byzantine Agreement models within their respective consensus frameworks.

By referencing the Federal Reserve’s findings, the researcher suggested that these assets had long been technically aligned with the principles necessary for secure digital payment systems. The acknowledgment, therefore, was seen as an early endorsement of the technologies underpinning these networks.

Implications for ISO 20022-Compliant Assets

The discussion also drew attention to the relationship between these BFT-based assets and the ISO 20022 messaging standard, which is now widely adopted across international payment systems.

According to SMQKE, the combination of Byzantine Fault Tolerant consensus and ISO 20022 compliance reinforces XRP, XLM, and HBAR’s suitability for integration into modern financial infrastructure.

This compatibility not only supports interoperability but also provides a framework for aligning distributed ledger technology with regulatory and institutional standards.

The researcher noted that this intersection between compliance and consensus efficiency may explain why these assets continue to be referenced in conversations about the evolving digital payments landscape.

As central banks and payment authorities modernize their infrastructures, the technical attributes outlined in the Federal Reserve’s earlier study appear increasingly relevant.

A Foundation for Broader Financial Integration

SMQKE further connected this research to the Federal Reserve’s more recent openness toward engaging with private crypto companies through its payment systems.

This development, the researcher argued, demonstrates that the foundations laid by prior studies on BFT and secure network design were not theoretical exercises, but preparatory steps toward a more integrated financial model involving digital assets.

Another X user, 36crypto, shared a similar interpretation, noting that the Federal Reserve’s acknowledgment of BFT’s strengths underscores the potential of XRP, XLM, and HBAR as efficient, scalable, and secure payment solutions.

The commentary reinforced the notion that these assets, due to their technical and compliance attributes, are well-positioned for greater adoption within institutional frameworks.

Overall, SMQKE’s analysis presents the Federal Reserve’s research as a precursor to current efforts toward blockchain-enabled financial modernization, situating BFT-led digital assets at the center of that ongoing transition.