Federal Reserve Will Use XRP, XLM, and HBAR, Researcher Shares Proof

Federal Reserve researchers published a paper titled “Heraclius: A Byzantine Fault Tolerant Database System with Potential for Modern Payments Systems.” Crypto researcher SMQKE resurfaced it and connected it to three specific digital assets: XRP, XLM, and HBAR.

The paper is in the Fed’s Finance and Economics Discussion Series and carries authors from FRB Boston, FRB San Francisco, and FRB NIT. It examines Byzantine Fault Tolerant consensus as the architecture best suited for secure, high-speed payment infrastructure.

The researchers note that a Byzantine fault-tolerant system can process 110,000 transactions per second. SMQKE’s argument is clear. The Fed has validated the consensus model that these assets already run on.

XRP and XLM Share the Same Foundation

The Fed’s paper identifies what it calls “Federated Byzantine Agreement” in Ripple and Stellar. According to the document, “Ripple and Stellar use a federated voting process that is a variant of the Byzantine Fault Tolerance consensus model.”

XRP runs on Ripple’s network. XLM runs on Stellar’s. Both assets sit directly inside the architecture the Fed chose to study. XRP, in particular, has long been positioned as the settlement layer for cross-border institutional payments, making the Fed’s focus on this consensus type especially relevant to its use case.

HBAR’s Position in the Same Architecture

HBAR operates on the Hedera Hashgraph network. Hedera’s own documentation describes its system as “asynchronous Byzantine fault tolerant,” which it calls the “highest level of security for distributed networks.”

The Hashgraph achieves consensus through a gossip protocol combined with a virtual voting algorithm. It does not require heavy electricity usage. The Fed paper’s favorable view of BFT mechanisms strengthens the case for HBAR’s infrastructure credentials alongside XRP and XLM.

SMQKE also noted that ALGO, IOTA, and XDC use the same Byzantine fault-tolerant mechanism.

ISO 20022 Compliance Adds Another Layer

XRP, XLM, and HBAR are all ISO 20022-compliant. ISO 20022 is the international standard for financial messaging. Central banks, payment processors, and financial institutions globally are migrating toward it. The Fed’s preference for BFT consensus, layered on top of ISO 20022 alignment, puts these three assets in a distinct category.

What This Means for Price Growth

The Fed paper does not mention XRP, XLM, or HBAR by name, but it validates the consensus technology they run on. Institutional recognition of BFT infrastructure builds the long-term credibility of assets built on it. XRP’s position as a cross-border settlement tool gives it the most direct exposure to any future Federal Reserve payment integration.

SMQKE concludes that the paper is “a direct confirmation that these assets are positioned as the top choices for future Federal Reserve payment services.”