A group of the world’s leading central banks, together with more than 40 major commercial banks, is ramping up testing of one of the most closely watched digital cross-border payments projects, reflecting the intensifying race to modernize and dominate the global financial architecture.

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The Agora Project: Modernizing International Payments

The Agora project, spearheaded by the Bank for International Settlements (BIS), involves central banks from Europe, Korea, Mexico, and Japan, alongside the New York Federal Reserve. These currencies collectively account for the majority of global payments, making the project a critical test case for the future of cross-border finance.

Current international transactions flow through a complex network of correspondent banks, which can be slow and costly, especially for less frequently traded currencies or payments involving developing countries. Agora aims to streamline this system, cutting costs and settlement times while enhancing transparency and security.

BIS Deputy General Manager Andréa Maechler described the initiation of user testing for the platform as:

“A major milestone for a project that has been garnering increasing attention in the financial community.”

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Tokenization and Atomic Settlement

Agora leverages tokenization technology, which is being hailed as a potential game-changer for global finance. By enabling atomic settlement, payments can be instantly and simultaneously approved, reducing the risks and delays inherent in traditional banking systems.

Tim Adams, head of the Institute of International Finance (IIF), which is coordinating input from commercial banks, explained:

“Tokenization has the potential to reshape how value moves, but only if it can be effectively integrated with governance, compliance, and risk frameworks that regulators and markets can trust.”

The current phase is focused on wholesale payments between banks, rather than consumer payments in shops, online platforms, or cafes.

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Comparisons with Other Initiatives

Although not a direct competitor, Agora is often compared to mBridge, another BIS-backed cross-border payments project. The BIS withdrew from mBridge in late 2024, effectively leaving China in control of that initiative, highlighting the geopolitical and strategic importance of global payment systems.

Maechler noted:

“Tokenization is shaping the future of global finance. Atomic settlement could be a game changer for cross-border payments in a digital era.”

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Testing and Future Expansion

The testing phase for Agora is expected to last around six months, after which results will be reported to decision-makers. Potential next steps may include:

• Adding more central banks and currencies, likely from the Continuous Linked Settlement (CLS) system, such as the Canadian, Australian, and New Zealand dollars, as well as major Scandinavian currencies.
• Further integrating with global financial messaging systems like SWIFT, which is also pursuing a blockchain-based overhaul.

This phased approach ensures that the project can be carefully evaluated for operational efficiency, compliance, and risk mitigation before a formal launch is considered.

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Significance for the Global Financial System

Agora reflects a broader trend toward modernizing cross-border payments and strengthening resilience in international finance. By reducing reliance on multi-link correspondent banking networks and leveraging digital technologies, central banks aim to create a faster, cheaper, and safer system for global financial transactions.

As central banks and commercial partners continue testing the platform, Agora may serve as a model for future central bank digital payment systems, influencing both policy frameworks and technological standards worldwide.