The Bank of England, the Monetary Authority of Singapore, and the Bank of Thailand have announced a joint initiative to trial synchronised settlement mechanisms for foreign exchange (FX) transactions.
The project will examine how real-time, interoperable cross-border FX settlement can be achieved, building on prior work from Project Meridian FX.
The test will employ simulated versions of each central bank’s real-time gross settlement systems along with distributed-ledger-based environments. The aim is to assess how these infrastructures can interoperate and support more complex, multilateral FX settlements.
Such transactions often span multiple time zones and regulatory regimes, where today’s FX settlement processes still face inefficiencies and risk.
A core objective is enabling atomic Payment-versus-Payment (PvP) settlement, ensuring both legs of an FX trade are completed simultaneously to reduce settlement and counterparty risk.
Officials also highlighted broader ambitions to create cross-border financial infrastructure for tokenised transactions, enhancing efficiency and trust in future payment and settlement systems.
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