- 40 banks have signed up for the Bank for International Settlements’ Project Agorá
- The initiative explores how tokenization can improve cross-border payments by integrating tokenized commercial and central bank money
- The initiative is backed by several major central banks
The Bank for International Settlements (BIS) has revealed that 40 private banks have signed up for its revolutionary cross-border payments project Project Agorá. Formerly called Project Atlas, The groundbreaking initiative aims to revolutionize the cross-border payment system by integrating tokenized commercial bank deposits with tokenized central bank money on a shared programmable platform. Project Agorá, which is backed by several major central banks, aims to develop a practical solution to expensive and slow cross-border money transfers.
Cheaper, Quicker Payments
The BIS announced Project Agorá in May, revealing that the scheme will examine how tokenized assets can enhance the efficiency and transparency of cross-border payments, traditionally seen as costly, slow, and opaque. By integrating programmable smart contracts, the BIS hopes to streamline operations while preserving the existing two-tier monetary structure.
The project has been backed by major central banks, including the Bank of England, the Federal Reserve Bank of New York, and the Bank of Japan, and the BIS yesterday revealed the results of its open pen application process which began in May. Participants include such banking luminaries as Banco Santander, BNP Paribas, BNY, Deutsche Bank, HSBC, and JPMorgan Chase.
Fully Operational System Targeted
Project Agorá is expected to run until 2025, with a BIS spokesperson stating that it “aims to lay the foundation for the future of cross-border payments.” The spokesman added, “Tokenization presents a significant opportunity to address long-standing inefficiencies in the current system, such as high costs and slow processing times.”
The project will go beyond theoretical models, with participants working toward a functioning prototype of a multi-currency ledger for cross-border payments. “We’re not just creating a proof-of-concept,” emphasized the representative. “The goal is to build a workable prototype that could become the blueprint for the future of financial market infrastructures.”
