BIS Partners With Visa, UBS and Deutsche Bank on Blockchain-Based Payment Pilot

Project Agorá, led by the Bank for International Settlements (BIS), is entering a new phase that will test blockchain-based cross-border payments using real money, marking a major step toward modernizing global financial infrastructure.

The initiative, which was first introduced two years ago, brings together seven central banks and more than 40 regulated financial institutions in an effort to improve how international money transfers are processed. By moving into live transaction testing, the project is shifting from theoretical development into practical implementation.

BIS Expands Blockchain-Based Cross-Border Payment Testing

The Basel-based BIS said Project Agorá was created to explore whether tokenization and distributed-ledger technology can make cross-border payments faster, cheaper, and more transparent.

Today, international transfers often pass through multiple intermediary banks, increasing costs and settlement times while reducing transparency. Project Agorá aims to streamline this process without weakening existing protections related to sanctions enforcement, compliance monitoring, and anti-money laundering controls.

Tim Adams, president of the Institute of International Finance, which coordinated participation from private financial firms, said the initiative could ultimately strengthen the broader global financial system.

Major Central Banks and Financial Firms Join the Initiative

The project includes some of the world’s most influential monetary and financial institutions.

Participating central banks include:

• The Federal Reserve Bank of New York

• The European Central Bank

• The Bank of Japan

• The Bank of Canada

• The Bank of England

Private-sector participants include major financial firms such as:

JPMorgan, UBS Group, Deutsche Bank, Mastercard, Visa.

The broad participation reflects growing institutional interest in integrating blockchain infrastructure into traditional banking systems rather than building parallel alternatives.

At the core of Project Agorá is a “unified ledger” model developed by the BIS. The system brings together tokenized central bank reserves and commercial bank deposits onto a shared programmable platform.

In theory, this structure could allow banks operating in different jurisdictions to settle international transfers almost instantly.

The payment process is designed so that all transaction conditions are verified beforehand, while account balances are updated simultaneously once settlement occurs. According to BIS Deputy General Manager Andrea Maechler, this model allows transactions to be completed “in one go” once all requirements are confirmed.

Blockchain Technology Without Replacing Correspondent Banking

Although the prototype relies on distributed-ledger technology, the BIS emphasized that the project is not intended to replace correspondent banking.

Instead, Project Agorá keeps the existing correspondent banking framework as the foundation of global payments while attempting to improve its efficiency through tokenization and automation.

This distinction is considered important because correspondent banking networks remain central to international compliance systems, including sanctions screening and anti-money laundering oversight.

The BIS said early testing suggests tokenization can reduce inefficiencies in wholesale cross-border payments while preserving financial safeguards and operational security.

No Launch Timeline Yet as Focus Remains on Stability

Despite progress in the pilot phase, the BIS has not announced a timeline for a broader rollout.

Participants have indicated that ensuring operational reliability and regulatory compatibility remains more important than accelerating deployment. The project is therefore being treated as a long-term infrastructure experiment rather than a near-term commercial product launch.

Broader Implications for Global Finance

Project Agorá may become one of the clearest examples yet of how blockchain technology is gradually being integrated into mainstream finance instead of existing outside it. Rather than disrupting banks entirely, the initiative reflects a growing trend toward modernizing traditional financial infrastructure using tokenization and programmable settlement systems.

If the pilot succeeds, it could influence how central banks, payment providers, and financial institutions approach the future of international settlement networks. More importantly, it highlights a broader shift in global finance: blockchain is increasingly being viewed less as an alternative system and more as an infrastructure layer capable of improving the efficiency of existing banking operations without removing regulatory oversight.