A group of major banks and central banks has completed a trial of tokenized cross-border payments, settling CHF 800,000 across six currencies. The test, called Project Agorá, involved JPMorgan, Citi, UBS, and several central banks.
What Project Agorá tested
The trial focused on settling payments using tokenized versions of traditional currencies. The CHF 800,000 settlement covered six different currencies, though the exact currencies were not disclosed. Tokenized payments use digital tokens on a shared ledger, allowing for near-instant settlement without intermediaries.
Who took part
JPMorgan, Citi, and UBS were the commercial banks involved. The central banks that participated were not named in the announcement, but the trial is part of a broader effort by central banks to explore digital currencies and tokenized deposits. The project was coordinated by the Bank for International Settlements, which has been leading work on central bank digital currencies.
Why tokenized payments matter
Tokenized payments could reduce costs and delays in cross-border transactions. Traditional cross-border payments often take days and pass through multiple intermediaries. By using a shared ledger, tokenized systems can settle in minutes or seconds, with full transparency. The trial demonstrated that such a system can work across multiple currencies and institutions.
What comes next
No timeline for a live implementation has been announced. The participants are expected to analyze the results before deciding on next steps. The completion of the trial marks a milestone in the exploration of tokenized wholesale payments, but questions remain about regulatory frameworks and scalability.
