The Bank for International Settlements said a tokenization prototype under its Project Agorá initiative has demonstrated the possibility of atomic settlement in wholesale cross-border transactions.
BIS and the Institute of International Finance convened Project Agorá, a public-private collaboration launched to address inefficiencies in such wholesale cross-border payments. The initiative focuses on settlement delays, counterparty risk, and operational friction in multi-currency transactions, according to the BIS.
In a report on Wednesday, BIS said the prototype used a layered architecture that allows central banks to retain operational autonomy while interacting through a shared interoperable platform. The report also found that atomic settlement, defined as “all-or-nothing” execution of transaction chains, is achievable across multiple currencies and jurisdictions.
It added that legal analysis concluded settlement finality can be reached across all seven participating jurisdictions, though further work is required on technical, operational, and contractual design aligned with national legal frameworks.
On privacy, BIS said it can be safeguarded at both balance and transaction levels using technologies that shield sensitive data while maintaining regulatory compliance.
