The Bank for International Settlements (BIS) has confirmed that a new prototype can deliver instant “atomic” settlement for wholesale cross-border payments using tokenized central bank reserves and commercial bank deposits. The system, built under Project Agorá, has passed initial technical and legal testing across multiple currencies and jurisdictions and will now move to real-value trials, with the Bank of Canada joining as the eighth central bank.
What the prototype achieved
The BIS said tests showed that wholesale transactions between institutions in different regulatory regimes can be settled on an “all-or-nothing” basis. This atomic settlement feature ensures that every leg of a transaction either completes simultaneously or the entire transaction fails, sharply reducing settlement and credit risk.
The prototype uses:
- tokenized central bank reserves and commercial bank deposits
- a shared interoperable platform for settlement
- a layered design that keeps each central bank’s system operationally independent
According to the BIS report, this model moves the concept of a unified ledger for wholesale finance from theory to practice, allowing major currencies to be exchanged as tokenized assets in near real time.
Legal and regulatory findings
Legal reviews in the original seven participating jurisdictions found that settlement finality is possible within existing national frameworks. However, the project identified conditions for full-scale deployment:
- technical adjustments to existing infrastructure
- contractual updates among participating institutions
- greater harmonization in how tokenized assets are treated under national laws
The BIS stressed that further legal alignment will be needed to ensure consistent recognition of tokenized central bank money and deposits across borders.
Privacy, security, and data handling
The prototype includes privacy tools aimed at meeting regulatory obligations without exposing sensitive
- data can be protected at both balance and transaction levels
- confidential information can remain shielded from other participants during cross-network settlement
- access to data can be restricted to authorized parties while preserving auditability
The design aims to satisfy supervisory and compliance requirements while limiting unnecessary data sharing in a multi-jurisdictional environment.
Modular design and future capabilities
The system is built with a modular architecture, allowing new functions to be added over time. Current and planned features include:
- conditional and continuous payments
- programmable payments with embedded compliance checks
- support for anti-money laundering and fraud monitoring as data-sharing tools mature
- enhancements to resilience and tighter integration with regulatory oversight systems
This approach is intended to support round-the-clock operations and complex transaction logic with minimal manual intervention.
Participants and next phase
Project Agorá is a joint initiative of the BIS and the Institute of International Finance. The first phase involved central banks from:
- United States
- United Kingdom
- France
- Japan
- South Korea
- Mexico
- Switzerland
More than 40 major financial institutions also took part.
With the Bank of Canada now joining, the project will:
- conduct live tests using real money rather than simulated balances
- focus on selected currencies and corridors
- expand participation from the private sector
The BIS signaled that the activity levels of specific commercial banks in these trials will help reveal which payment routes may be the earliest to adopt high-speed atomic settlement at scale.
Link to the growth of real-world asset tokenization
The timing of the Agorá milestone coincides with rapid expansion in the on-chain real-world asset (RWA) market. By May 2026, tokenized RWAs were estimated at between $31 billion and $34 billion, led by:
- tokenized U.S. Treasuries, nearing $15 billion in size
This growth underlines growing demand for representing traditional financial instruments on blockchain-based infrastructure. Project Agorá provides a central bank-backed settlement layer that could sit underneath such markets, offering final settlement in tokenized central bank money.
Implications for on-chain finance
For entities operating with on-chain assets, the prototype signals the arrival of central bank money in a tokenized wholesale format:
- the platform is explicitly designed for wholesale use and is not meant for retail access
- it combines the safety of central bank reserves with the flexibility of programmable money
- atomic settlement offers a way to drastically cut the time and risk embedded in the current correspondent banking model
This stands in contrast to today’s multi-day cross-border processes, where payments pass through several intermediaries and are exposed to operational and credit risks.
Relationship to stablecoins and digital assets
Market participants view the initiative as an institutional response to the efficiencies demonstrated by dollar-backed stablecoins and other digital asset networks:
- Project Agorá aims to deliver similar benefits in speed and cost
- it keeps activity within established supervisory and regulatory structures
- a regulated multi-currency ledger could provide an alternative settlement rail for major currencies, directly anchored in central bank money
By combining atomic settlement, programmability, and legal finality, the project outlines a possible future where wholesale finance operates continuously, with complex transactions automated and settled instantaneously across borders.
Want to understand how traditional finance meets tokenization? Explore Toobit’s vision in this TradFi deep-dive next.
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