The Bank for International Settlements (BIS) has concluded real-value testing for Project Agorá, its initiative focusing on tokenized wholesale cross-border payments. The trial involved 28 entities, including major central banks and commercial banks, settling approximately 800,000 Swiss francs (about $1 million) across 17 cross-currency scenarios.
Wide participation from global banks
Project Agorá featured collaboration from key central banks: the Bank of England, Bank of France, Bank of Japan, Bank of Korea, and the Swiss National Bank. Major commercial banks also participated, such as JPMorgan Chase, Citi, Deutsche Bank, BNP Paribas, UBS, Standard Chartered, and MUFG.
These institutions jointly tested the use of digital tokens representing central bank reserves and commercial bank deposits. The tests covered payments in major currencies including Swiss francs, euros, pounds sterling, Japanese yen, South Korean won, and US dollars.
Settlement of cross-border transactions averaged about 80 seconds per operation, according to data provided by the BIS.
| Currency | Participating Central Bank | Settlement Time (Average) |
|---|---|---|
| Swiss franc | Swiss National Bank | 80 seconds |
| Euro | Bank of France | 80 seconds |
| Pound sterling | Bank of England | 80 seconds |
| Japanese yen | Bank of Japan | 80 seconds |
| South Korean won | Bank of Korea | 80 seconds |
| US dollar | Multiple | 80 seconds |
BIS, often referred to as the central bank for central banks, coordinates international monetary and financial cooperation and provides banking services to central banks worldwide.
Technological approach and atomic settlement
Launched in 2024, Project Agorá aims to assess how tokenization of commercial bank deposits and central bank reserves can streamline and enhance wholesale cross-border payments. In May, project leaders revealed that their prototype enabled atomic settlement across multiple currencies and jurisdictions.
Atomic settlement ensures that transactions are completed instantly and simultaneously across different parties, reducing counterparty risk in cross-border transfers.
Mini dictionary: Atomic settlement, a process in which interdependent transactions across different networks, asset classes, or currencies settle together at the same time, eliminating settlement risk by ensuring both sides complete their obligations simultaneously.
Project Agorá demonstrated real-value settlement with tokenized reserves and deposits, achieving average settlement times of 80 seconds across six major currencies.
Next steps and ongoing work
According to the BIS, July’s live trials represent a significant milestone in tokenized payment development for the wholesale banking sector. The organization indicated that testing will continue as Project Agorá moves forward.
Future phases of the project are expected to refine both technological frameworks and regulatory considerations, focusing on further improving cross-border settlement speed and security.
