Odaily Planet Daily reports: Latest research from Project Agorá, led by the Bank for International Settlements (BIS), shows that tokenization technology has the potential to significantly improve settlement speed and reconciliation efficiency in cross-border payments, while reducing transaction failures and operational risks.
The project involves collaboration between the BIS and seven central banks, along with more than 40 financial institutions, including the Federal Reserve Bank of New York, the Bank of England, the Bank of Japan, and the Swiss National Bank.
Research suggests that tokenizing central bank reserves and commercial bank deposits can enable atomic settlement across currencies and jurisdictions, ensuring transactions are either completed simultaneously or fail simultaneously, thereby reducing the credit and settlement risks commonly associated with cross-border payments.
Project Agorá has completed its simulation testing phase and plans to move into the "real-value" trading phase to explore on-chain settlement applications for selected currencies and institutions in a live funds environment. (CoinDesk)