The Bank for International Settlements Innovation Hub published a report on Project Meridian FX, an experiment led by its London and Eurosystem Centres with the Bank of England, Bank of France, Deutsche Bundesbank, Bank of Italy and the European Central Bank, testing how a “synchronisation operator” could orchestrate payment versus payment foreign exchange settlement across different ledger technologies. The work assessed the synchronisation operator’s usability across asset types and technologies and explored additional features such as liquidity-saving mechanisms and user-defined transaction rules including approval limits. Using an emulated UK real-time gross settlement system, the project connected to three experimental Eurosystem interoperability solutions: Deutsche Bundesbank’s Trigger Solution, Banca d’Italia’s TIPS Hash-Link and the Banque de France’s DL3S DLT Interoperability Solution, as well as testing connectivity between two RTGS systems in different jurisdictions and between RTGS and a DLT-based settlement platform. The findings highlight how RTGS operators could enable interoperability with new payments technologies and point to potential ways to reduce costs, risks and time in cross-border FX settlement, with synchronisation described as agnostic to both the asset or funds involved and the underlying ledger technology.

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