BIS stated that it will continue to advance Project Agora and expand the pilot program to include the use of real funds. This project focuses on cross-border wholesale payments, aiming to reduce settlement times and friction caused by compliance checks.

Pilot program enters testing phase

The project was proposed by BIS in 2024, with participants including the US Federal Reserve, the Bank of England, the Bank of Japan, and more than 40 private banks. BIS believes that tokenization can improve multi-currency settlement while ensuring security.

Wholesale payment aims to improve efficiency

Wholesale payments target large-value transfers by governments, financial institutions, and other entities. The BIS points out that these cross-border transfers often take 1 to 5 days, or even longer, due to varying compliance verification processes across different jurisdictions.

Stablecoin experience is being used as a benchmark.

BIS contrasts this approach with the performance of stablecoins in retail cross-border payments. Stablecoins have already reduced settlement times to the second level, while tokenization is seen as an attempt to introduce a similar approach to wholesale payments.

The Bank of Canada is also involved.

The Bank of Canada says cross-border payment innovations could benefit the country's economy. Senior Deputy Governor Carolyn Rogers stated that tokenization promises to make payments faster, cheaper, more efficient, and more secure.