Global banks test tokenized money for cross-border payments in $1 million BIS pilot

A group of major global banks has completed a pilot project using tokenized forms of money to settle real cross-border payments. The test, organized by the Bank for International Settlements (BIS) under Project Agorá, involved five central banks and 28 commercial banks including JPMorgan, Citi, UBS, Deutsche Bank, and Standard Chartered. The participants processed roughly $1 million (CHF 800,000) in 30 transactions across six currencies: U.S. dollar, euro, British pound, Japanese yen, Swiss franc, and South Korean won. The payments settled on average in about 80 seconds using a shared ledger that operated alongside existing payment systems.

Project Agorá represents a significant step as it tokenized two traditional forms of bank money: central bank reserves and commercial bank deposits. Unlike private sector stablecoins such as Circle or Tether, the tokenized money in this pilot was backed by these established banking instruments. The shared ledger maintained a single record of ownership and payment status, allowing banks to see payments’ progress simultaneously and improving traceability. The approach contrasts with current cross-border payment methods, which typically pass through multiple correspondent banks, each keeping separate records before settlements conclude.

Additionally, the pilot included simultaneous foreign exchange settlements, permitting banks to swap currencies at the same time rather than sequentially. This innovation aims to reduce counterparty risk—the risk that one party transfers funds but does not receive the corresponding currency in return. By enabling synchronized currency exchanges and a unified ledger, Project Agorá may lower both costs and risks involved in international payments.

The BIS report highlights that these developments fit into a broader shift toward tokenized financial assets, as stablecoins and other digital representations of money gain traction in global finance. While the pilot operated without direct integration into banks' existing payment infrastructure, it demonstrated positive results in speed and traceability. Project Agorá forms part of ongoing efforts by central banks and commercial lenders to explore how digital money and tokenization can modernize the infrastructure that powers global financial markets.