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BIS project finds tokenization could make cross-border payments faster, safer
Key takeaways
- Atomic settlement refers to transactions completing on an "all-or-nothing" basis, reducing the risk that one side of a cross-border payment fails while the other succeeds.
- The initiative involved the Federal Reserve Bank of New York, Bank of England, Bank of Japan, Swiss National Bank and other central banks alongside large commercial banks and financial firms.
- Project Agorá participants now plan to move beyond simulations toward testing real-value transactions involving some currencies and institutions.
Project Agorá, a joint effort between the BIS, seven central banks and more than 40 private financial institutions, concluded that tokenized central bank reserves and commercial bank deposits could support atomic settlement across currencies and jurisdictions.
Atomic settlement refers to transactions completing on an "all-or-nothing" basis, reducing the risk that one side of a cross-border payment fails while the other succeeds.
The initiative involved the Federal Reserve Bank of New York, Bank of England, Bank of Japan, Swiss National Bank and other central banks alongside large commercial banks and financial firms.
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