Project Agorá: A Shared Programmable Platform for Wholesale Cross-Border Payments

Why It Matters

By enabling instant, risk‑free settlement across borders, Project Agorá could lower transaction costs and boost efficiency for global trade, accelerating the adoption of tokenised central‑bank money.

Key Takeaways

• Project Agorá prototypes 24/7 multi‑currency atomic settlement platform.
• Two‑layer blockchain separates tokenised deposits from central bank reserves.
• Pre‑settlement compliance reduces failed payments and settlement risk.
• Tokenisation works within existing legal frameworks, preserving money’s nature.
• Public‑private collaboration essential for next‑gen cross‑border payment systems.

Summary

Project Agorá, a joint initiative of the Bank for International Settlements and the Institute of International Finance, brings together seven central banks and more than 40 regulated financial institutions to build a shared, programmable platform for wholesale cross‑border payments.

The prototype runs on a two‑layer blockchain: a unifying ledger records tokenised commercial‑bank deposits, while jurisdiction‑specific ledgers hold tokenised central‑bank reserves, preserving each sovereign’s autonomy. By aligning compliance checks before liquidity is committed, the system achieves 24/7 atomic settlement, eliminating failed payments and settlement risk.

During development, the consortium demonstrated that tokenisation does not change the legal nature of money and can operate within existing regulatory frameworks. Privacy‑preserving techniques satisfy stringent data‑sharing requirements, and the collaboration succeeded in aligning diverse institutions around a common settlement architecture.

If scaled, the platform could dramatically cut costs, speed up settlement times, and reduce reconciliation burdens for global trade, positioning tokenised reserves as a cornerstone of the next generation of resilient, regulated cross‑border payment networks.

Original Description

Project Agorá, a unique public-private collaboration convened by the Bank for International Settlements (BIS) and the Institute of International Finance (IIF), has demonstrated that tokenisation can help to address inefficiencies in wholesale cross-border payments in a safe and secure manner through multi-currency settlement using tokenised central bank reserves and tokenised commercial bank deposits.

The project, involving the Bank of England, the Federal Reserve Bank of New York, the Bank of France (representing the Eurosystem), the Bank of Japan, the Bank of Korea, the Bank of Mexico, the Swiss National Bank and more than 40 private sector financial institutions, today published a report detailing the findings of its exploratory work.

The report highlights the following key findings from the development of the Project Agorá prototype:

Tokenisation can help to address inefficiencies in wholesale cross-border payments in a safe and secure manner through multi-currency settlement using tokenised central bank reserves and tokenised commercial bank deposits.

Atomic settlement – enabling cross-border wholesale transaction chains to be completed on an “all-or-nothing” basis – is achievable securely across currencies and jurisdictions.

A layered prototype architecture enables central banks to retain autonomy over national currencies and operations within an interoperable shared platform.

Privacy can be safeguarded at both balance and transaction levels through technologies that protect sensitive data while supporting regulatory compliance. 

Tokenisation, as contemplated in Project Agorá, does not alter the legal characterisation of, or associated obligations relating to, central bank reserves and commercial bank deposits.

Legal analysis finds that settlement finality is achievable across all seven participating jurisdictions. Further work is needed to define technical, operational and contractual requirements best aligned with the legal frameworks in each jurisdiction.

The modular design can unlock new capabilities, including conditional and always-on payments, while enabling future enhancements in areas such as anti-money laundering, countering the financing of terrorism, sanctions compliance and fraud detection, as regulatory and data-sharing frameworks evolve. 

Project participants, including central banks, have expressed strong and sustained interest in further exploring the potential benefits of the prototype. Future work is expected to involve an enhanced role for the private sector, supported by continued and active engagement from participating central banks. The Bank of Canada has also joined the project, and additional private sector financial institution participation is anticipated.

Further information on the project will be published on the BIS and IIF websites as the project advances.

https://www.bis.org/about/bisih/topics/fmis/agora.htm