BIS Tests 'Tokenized Currency' for Cross-Border Payments: 28 Global Banks Participate, Average Settlement Time of 80 Seconds

By: rootdata|2026/07/31 09:46:30

Tokenization technology is moving from proof of concept to global financial infrastructure. Under the leadership of the Bank for International Settlements (BIS), the "Project Agorá," involving several top global banks, has successfully completed a pilot test of cross-border payments using "tokenized currency," processing approximately $1 million in real fund transactions with an average settlement time of just 80 seconds.

This trial brought together 5 central banks and 28 major global commercial banks, including JPMorgan Chase, Citi, UBS, Deutsche Bank, and Standard Chartered, to jointly test the feasibility of tokenized currency in cross-border payments, interbank settlements, and foreign exchange transactions.

According to the BIS report, the Project Agorá test covered 6 major currencies, including the US dollar (USD), euro (EUR), British pound (GBP), Japanese yen (JPY), Swiss franc (CHF), and South Korean won (KRW).

The trial utilized "tokenized central bank reserves" and "tokenized commercial bank deposits" as settlement assets, completing various cross-border payment scenarios, including corporate payments, interbank fund transfers, and foreign exchange (FX) transactions.

BIS noted that although the prototype platform has not yet been directly integrated with the existing payment systems of the banks, all transactions still averaged settlement completion in about 80 seconds, demonstrating the potential of tokenized payment structures to significantly enhance efficiency.

Tokenized Finance Accelerates Implementation, New Model for Cross-Border Payments

The launch of Project Agorá also reflects the global financial market's accelerating embrace of tokenization technology.

In recent years, stablecoins and the tokenization of real-world assets (RWA) have rapidly developed, with many asset management companies beginning to launch tokenized money market funds and tokenized private credit funds. Stablecoins are also gradually being used by companies for cross-border payments and corporate fund management.

Against this backdrop, Project Agorá further explores whether tokenization technology can comprehensively upgrade the existing cross-border payment infrastructure of banks.

BIS emphasizes that Project Agorá is fundamentally different from stablecoins available in the market. Currently, mainstream stablecoins are mostly issued by private entities such as Circle and Tether; whereas Project Agorá tokenizes two types of currency within traditional banking systems:

  • Central Bank Reserves: Funds used for final settlement between commercial banks.
  • Commercial Bank Deposits: Deposits held by businesses and general customers in bank accounts.

In other words, Project Agorá does not create new payment currencies but rather moves existing bank currencies onto the blockchain to enhance cross-border payment efficiency.

Shared Ledger Replaces Layered Transfers, Reducing Cross-Border Payment Costs

Current cross-border payments typically require multiple correspondent banks, each maintaining its own accounting records, which delays the process and increases costs before funds can be settled.

Project Agorá employs a shared ledger architecture, recording tokenized currencies on the same decentralized ledger, allowing all participating banks to synchronize asset ownership and payment status, significantly simplifying the cross-border payment process.

Foreign Exchange Transactions with Synchronized Settlement, Reducing Settlement Risks

This pilot test also validates a new model for foreign exchange settlements. In traditional cross-border foreign exchange transactions, one party typically has to wait for the settlement of one currency before the other party pays the corresponding currency, which can create settlement risks where one party has paid while the other has not fulfilled its obligation.

Project Agorá allows banks to simultaneously complete the exchange of two currencies, achieving near-simultaneous settlement and effectively reducing counterparty risk.

Additionally, participating banks have indicated that the new platform provides greater transparency and traceability throughout the payment process from initiation to completion, and it can operate in parallel with existing payment systems rather than completely replacing them, aiding financial institutions in gradually adopting tokenized infrastructure.

Global Financial Infrastructure Moves Towards the Era of Tokenization

Project Agorá is one of several wholesale tokenization initiatives globally, reflecting that central banks and large commercial banks are actively exploring how digital currencies can reshape the underlying architecture of financial markets.

As tokenized currencies, tokenized deposits, and tokenized real-world assets continue to develop, the market generally believes that future cross-border payments, interbank settlements, and foreign exchange transactions will gradually be driven by blockchain technology, and tokenized finance is moving from the experimental stage to practical commercial applications.

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