BIS Project Agorá Finds Tokenization Could Speed, Secure Cross-Border Payments

Project Agorá, led by the Bank for International Settlements, has found that tokenization could improve the efficiency and stability of cross-border payments, CoinDesk reported on May 27. The findings are drawing market attention to the potential expansion of digital financial infrastructure at central banks.

The project, which includes the BIS and major central banks, found that tokenizing central bank reserves and commercial bank deposits could significantly improve the speed and reliability of cross-border payments, according to the report.

Project Agorá is studying a framework for issuing and settling central bank money and bank deposits as blockchain-based tokens. The project is said to be moving into a real-value testing phase.

CoinDesk said the project is evaluating whether a tokenization-based payment system can process transactions faster than existing cross-border remittance networks and reduce settlement risk. Major central banks and global commercial banks are conducting technical experiments together.

Market interest in possible structural changes to the global financial system is also growing as discussions around central bank digital currencies, or CBDCs, and tokenized financial infrastructure expand. Regulatory frameworks and cross-border standardization remain key challenges.