Transaction Banking

Cross-Border Payments Reimagined: Navigating ISO 20022, Stablecoins, and Digital Assets for the Next Era of Global Transactions

BAFT Releases New White Paper on the Future of Cross-Border Payments

Cross-Border Payments Reimagined: Navigating ISO 20022, Stablecoins, and Digital Assets for the Next Era of Global Transactions provides practical guidance for financial institutions navigating the next phase of global payments modernization.

WASHINGTON, D.C. – BAFT (Bankers Association for Finance and Trade), the leading international financial services association for transaction banking, today announced the release of its latest industry white paper, Cross-Border Payments Reimagined: Navigating ISO 20022, Stablecoins, and Digital Assets for the Next Era of Global Transactions.

As financial institutions continue to modernize payment infrastructures and respond to rapidly evolving customer expectations, the global payments ecosystem is entering a transformative period. The widespread adoption of ISO 20022 has established a new foundation for richer payment data and improved interoperability, while stablecoins, tokenized deposits, distributed ledger technologies, and other digital asset innovations are reshaping how value may be transferred across borders. Together, these developments are creating new opportunities to enhance speed, transparency, efficiency, and resilience in international payments.

Developed by BAFT’s Payments Committee in collaboration with leading transaction banking professionals from across the industry, the white paper explores how banks can strategically navigate these converging trends while maintaining the highest standards of risk management, regulatory compliance, and operational resilience.

“The future of cross-border payments will not be defined by a single technology, but by the ability to integrate modern payment standards, emerging digital assets, and trusted banking infrastructure into a seamless global ecosystem,” said Deepa Sinha, SVP, Payments & Financial Crimes, BAFT. “This white paper provides financial institutions with practical insights into the opportunities, challenges, and strategic decisions that will shape transaction banking over the coming decade.”

The publication examines several critical themes influencing the evolution of cross-border payments, including:

  • The strategic value and implementation lessons of ISO 20022
  • The emerging role of stablecoins, tokenized deposits, and digital assets in commercial banking
  • Opportunities to improve cross-border payment speed, transparency, and interoperability
  • Risk management considerations, including liquidity, cybersecurity, operational resilience, sanctions compliance, and anti-money laundering (AML) controls
  • Regulatory developments and global policy considerations
  • Practical use cases across correspondent banking, corporate treasury, trade finance, and commercial payments
  • The future role of banks within an increasingly interconnected digital payments ecosystem

Rather than viewing ISO 20022, stablecoins, and digital assets as competing technologies, the white paper demonstrates how these innovations can complement one another to support a more efficient, secure, and inclusive global financial system.

The report also highlights the continued importance of collaboration among banks, regulators, payment infrastructures, fintechs, and technology providers to establish interoperable standards, common governance frameworks, and trusted market practices that foster innovation while preserving financial stability.

“As the payments landscape continues to evolve, collaboration across the industry will be essential to realizing the full potential of these technologies,” said Sinha. “Our goal is to provide institutions with actionable guidance that supports innovation while reinforcing the trust, security, and resilience that underpin global transaction banking.”

The white paper reflects BAFT’s ongoing commitment to advancing thought leadership on the future of transaction banking and supporting its members as they navigate the rapidly changing payments landscape.

Cross-Border Payments Reimagined: Navigating ISO 20022, Stablecoins, and Digital Assets for the Next Era of Global Transactions is available to BAFT members and the broader financial services community through the BAFT website.

The full white paper is available here: Download Paper HERE 

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About BAFT

BAFT, an international financial services association headquartered in Washington, D.C., is the leading global forum for transaction banking, bringing together banks, financial institutions, technology providers, and industry stakeholders to drive innovation, collaboration, and best practices across trade finance, payments, supply chain finance, financial crime compliance, and transaction banking. Through advocacy, education, and thought leadership, BAFT supports the development of a safe, efficient, and resilient global financial system.

BAFT Publishes New White Paper on Best Practices in Mitigating Fraud in Transaction Banking

ORLANDO, FL – BAFT (Bankers Association for Finance and Trade) today announced the release of its latest white paper, “Best Practices in Mitigating Fraud in Transaction Banking,” offering financial institutions practical, industry-driven guidance to address the rapidly evolving fraud landscape across payments, trade finance, and client onboarding. 
 
As transaction banking becomes increasingly digital, real-time, and interconnected, fraud schemes are growing in sophistication and scale. The paper explores how emerging trends, including instant payments, digital onboarding, and AI-enabled social engineering, are reshaping risk, while highlighting actionable strategies to strengthen prevention, detection, and response capabilities. 
 
Developed by BAFT’s Working Group on Fraud Mitigation, the white paper provides a comprehensive framework for financial institutions to manage fraud risk across the full lifecycle. It also underscores the growing convergence between fraud, anti-money laundering (AML), and sanctions risks, and the need for integrated, cross-functional approaches to risk management.

“Fraud is no longer a siloed risk—it is increasingly interconnected with broader financial crime threats and amplified by technological advancements,” said Deepa Sinha, SVP for Payments and Financial Crimes. “This paper provides practical guidance to help banks strengthen resilience while maintaining efficiency and client trust in a rapidly changing environment.” 
 
The white paper also emphasizes the importance of collaboration and information sharing, including public-private partnerships and cross-border coordination, as essential tools in combating fraud at scale.

Key highlights of the white paper include: 

  • An overview of evolving fraud typologies, including authorized push payment (APP) fraud, account takeover, synthetic identity fraud, mule networks, and trade document fraud 
  • Analysis of emerging risk drivers such as instant payments, digital onboarding, and AI-driven fraud techniques 
  • A practical control framework covering prevention, real-time detection, investigation, and response 
  • Insights into the convergence of fraud, AML, and sanctions risks 
  • Best practices for collaboration, data sharing, and cross-border coordination 
  • Real-world case studies and key fraud indicators, particularly in trade finance 

The publication is part of BAFT’s ongoing efforts to support the global transaction banking community in navigating emerging risks and advancing safe, efficient, and resilient financial systems.

The full white paper is available here: Download Paper HERE 

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About BAFT (Bankers Association for Finance and Trade)
BAFT is the leading global industry association for international transaction banking. Bringing together financial institutions, service providers, and the regulatory community, BAFT provides thought leadership, advocacy, education, and a platform for collaboration to promote sound financial practices that foster innovation, efficiency, and commercial growth. The association engages in a broad range of issues affecting transaction banking, including trade finance, payments, and compliance, helping members navigate a rapidly evolving global landscape. For more information about BAFT, visit baft.org, or follow BAFT on X (Formally Twitter), LinkedIn, and YouTube.  

BAFT Applauds New York for Modernizing Trade Laws 

WASHINGTON, D.C. (December 10, 2025) – New York enacted major legislation to support and increase the digitalization of trade finance. BAFT (Bankers Association for Finance and Trade), the leading global industry association for international transaction banking, applauds Governor Kathy Hochul for signing, Sen. Brad Hoylman-Sigal, and NY Assemblyman Alex Bores for their efforts to bring legal clarity and recognition for digital trade payment instruments. 
 
“New York Law governs a significant volume of international commerce, so this was particularly important for the United States to maintain its leading role in international trade. This update will provide interoperability with the global community that have already adopted or are currently considering similar legislation,” said President and CEO Tod Burwell, BAFT. 
 
A large obstacle to trade digitalization is the lack of recognition for electronic trade documents under various legal frameworks. Much of the trade finance process is to this day physical paper dependent. The law allows for interoperability between New York and is compatible with electronic records contemplated by UNCITRAL’s Model Law of Electronic Transferable Records (MLETR), which is the basis for many legal frameworks around the world. Thirty-three states in the United States have adopted similar legislation. 
 
With New York being one of the leading and most influential states for commercial transactions in the world, the passage of this legislation marks a significant advance in digitalizing the trade finance process. 
 
BAFT will continue its efforts to bring all 50 states to adopt similar legislation as well as continuing its efforts globally to bring acceptance of digital trade finance documents. A link to the bill can be viewed here. 

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About BAFT
BAFT is the leading global industry association for international transaction banking. Bringing together financial institutions, service providers, and the regulatory community, BAFT provides thought leadership, advocacy, education, and a platform for collaboration to promote sound financial practices that foster innovation, efficiency, and commercial growth. The association engages in a broad range of issues affecting transaction banking, including trade finance, payments, and compliance, helping members navigate a rapidly evolving global landscape. For more information about BAFT, visit baft.org, or follow BAFT on X (Formally Twitter), LinkedIn, and YouTube.

Podcast | The G20 Roadmap and the Future of Cross Border Payments

To explore how far the industry has come since the G20 Roadmap for Cross Border Payments was endorsed in 2020, and how much more remains to be done, Trade Treasury Payments (TTP) spoke with Deepa Sinha, Senior Vice President for Payments and Financial Crimes at BAFT, and Shriyanka Hore, Global Head of Industry Engagement at Swift.

Via Trade Treasury Payments by Deepa Sinha

Amid four packed days at Sibos 2025 in Frankfurt, experts from across the transaction banking space came together to discuss (among many other topics from a long agenda) how to make cross-border payments better. Today, trillions of dollars move across borders each day and global commerce has become more digital than ever, which means that implementation is becoming a central priority.

In the final hours of the conference, Trade Treasury Payments (TTP) made time to sit down with Deepa Sinha, Senior Vice President for Payments and Financial Crimes at BAFT, and Shriyanka Hore, Global Head of Industry Engagement at Swift, to discuss how far the industry has come and how far it still has to go.

The G20 roadmap for cross-border payments, endorsed in 2020, set a collective goal of making international payments faster, cheaper, more transparent, and more accessible by 2027. Even in 2025, fragmented regulations and differing market practices mean that a cross-border payment can look very different depending on where it starts and ends.

Read the article and listen to the full episode here.

Banking in an uncertain world: How geopolitics and technology are rewiring transactional finance

Via Trade Finance Global by Doga Usanmaz

  • Geopolitical tensions and shifting trade corridors are requiring banks to adapt to political risks and regional economic changes.
  • Europe’s focus on financial sovereignty is driving strategic investment into sectors like energy and defense.
  • Regarding digitalisation, challenges remain in balancing technological innovation with social impacts, particularly in developing regions

Rerouted trade corridors, regional fragmentation, a currency arms race… these are no longer distant possibilities. They are active geopolitical and macroeconomic forces, reshaping transactional banking. 

At this year’s BAFT Global Council’s Forum in Frankfurt, Germany, a panel of senior leaders from prominent global and regional banks explored how shifting political tensions and economic dynamics are creating deep uncertainty for the industry, and how banks are adapting their strategies, infrastructure, and client relations in response.

The panel, moderated by Nick Smit, head of financial institutions at ING Bank and chair of BAFT’s board, found that transactional banks are being rewired to confront political risk, digitisation, and technological disruption. The panel provided a region-by-region exploration of the subject, and some interesting parallels came up.

Read the full article here.

10 lessons banks have learned from the ISO 20022 migration

Via Trade Treasury Payments by Deepesh Patel

The shift to ISO 20022 marks one of the most significant changes in global financial infrastructure in decades. ISO 20022 is a universal messaging standard that uses structured, machine-readable XML data to describe financial transactions. It replaces SWIFT’s legacy MT (Message Type) format, which has been in use for more than 40 years and relies on unstructured text fields with limited capacity for automation and analytics.

SWIFT introduced ISO 20022 for cross-border payments and reporting (CBPR+) on 20 March 2023, launching a three-year coexistence period in which both MT and ISO 20022 (MX) messages could be exchanged. This period ends on 22 November 2025, when SWIFT will retire MT messages in Categories 1, 2, and 9 in bank-to-bank communication. After that date, all cross-border payments, bank-to-bank transfers, and cash-management messages must be sent and received in ISO 20022 format.

These categories include common flows such as MT103 (customer credit transfer) and MT202 (bank transfer), which are being replaced by pacs.008 and pacs.009, as well as MT940 statements, now superseded by camt.053.

For banks, corporates, and treasurers, the migration enables richer, more consistent data for reconciliation, sanctions screening, and analytics. For the wider trade, treasury, and payments (TTP) ecosystem, ISO 20022 creates opportunities to enhance supply-chain visibility, improve straight-through processing, and align cross-border and domestic systems under a single standard.

BAFT’s ISO 20022 Migration Lessons Learned paper, drawing on insights from leading global banks, outlines key takeaways from this transformation. The following ten lessons summarise what has worked, where challenges remain, and how institutions can prepare for the final phase.

Read full article here.