If you’ve ever sent money internationally and wondered why it takes so long and costs so much, you’re not alone. Cross-border payments have been one of finance’s most persistent headaches for decades and now, a collaboration between some of the world’s most powerful financial institutions suggests that tokenisation could be the fix the system has been waiting for.
What Is Project Agorá?
Project Agorá is a public-private initiative convened by the Bank for International Settlements (BIS) and the Institute of International Finance (IIF). It brings together seven major central banks: the Bank of England, the Federal Reserve Bank of New York, the Bank of France representing the Eurosystem, the Bank of Japan, the Bank of Korea, the Bank of Mexico, and the Swiss National Bank, alongside more than 40 private sector financial institutions.
The project’s central question is straightforward: can tokenisation make wholesale cross-border payments faster, safer, and more efficient without dismantling the trust and legal integrity that underpins the current system? According to the BIS, the answer is yes.
What Has the Project Actually Found?
The headline result, according to the BIS, atomic settlement can be achieved securely across multiple currencies and jurisdictions. In simple terms, a transaction either completes in full or does not happen at all. That matters because cross-border payments frequently move through multiple intermediary banks before reaching their destination, creating delays, costs, and settlement risk.
The BIS also reports that central banks can retain full control over their national currencies within a shared platform, an important consideration for institutions wary of ceding control over monetary infrastructure. Privacy protections were built in at both the balance and transaction level, addressing a long-standing concern for institutional adoption of tokenised systems.
Importantly, the BIS found that payment finality, the point at which a transaction cannot be reversed, is achievable across all seven participating jurisdictions. However, further work is needed to align the technology with each country’s legal framework.
What Comes Next?
The project is moving beyond simulation. Real-value transactions involving selected currencies and participants are now planned, marking the shift from controlled testing to real-world conditions. The Bank of Canada has also joined the initiative, expanding its international reach, with further private-sector participation expected.
The Bigger Picture
It would be a mistake to read Project Agorá in isolation. It sits alongside a broader geopolitical competition over the future of global payments infrastructure. mBridge, a separate digital payment project led by China alongside Hong Kong, Thailand, the UAE, and Saudi Arabia, is pursuing a similar goal through a different set of participants. The BIS notably withdrew from mBridge in October 2024. Meanwhile, India has proposed linking BRICS member digital currencies ahead of this year’s summit.
Project Agorá, anchored by Western central banks, represents one approach to building that future. mBridge represents another. Technical progress matters, but so does the question of which infrastructure ultimately underpins global payments.
Why Does This Matter?
For years, the promise of tokenised finance has outpaced the reality. Projects have launched, stalled, and quietly disappeared. What distinguishes Project Agorá is the weight of the institutions behind it and the seriousness of what they have tested. This is not a startup pitching a whitepaper. It is a BIS-coordinated effort involving the Bank of England and the Federal Reserve Bank of New York stress-testing a prototype.
