Bank for International Settlements: Tokenization Could Significantly Enhance Cross-Border Payment Efficiency and Security

Odaily reported that the latest research from Project Agorá, led by the Bank for International Settlements (BIS), indicates that tokenization technology holds significant potential to improve settlement speed and reconciliation efficiency in cross-border payments, while reducing transaction failures and operational risks.

The project involves the BIS collaborating with seven central banks and over 40 financial institutions, including the Federal Reserve Bank of New York, the Bank of England, the Bank of Japan, and the Swiss National Bank.

The research suggests that tokenizing central bank reserves and commercial bank deposits could support "atomic settlement" across currencies and jurisdictions, enabling transactions to either "complete simultaneously or fail simultaneously," thereby reducing the credit and execution risks commonly associated with cross-border payments.

Currently, Project Agorá has completed the simulation testing phase and plans to move into a "real-value transaction" testing phase, exploring on-chain settlement applications for select currencies and institutions in a real-funds environment. (CoinDesk)