Bank of England, Monetary Authority of Singapore and Bank of Thailand launch joint experiments on synchronised cross-border FX settlement

The Bank of England, the Monetary Authority of Singapore and the Bank of Thailand announced a collaboration to explore the technical and policy implications of using synchronised settlement mechanisms to settle foreign exchange transactions across borders. Building on insights from Project Meridian FX, the work will test synchronised FX settlement across a diverse technical and institutional landscape. Initial experiments will use simulated versions of the participating central banks’ real-time gross settlement systems and Distributed Ledger Technology-based settlement environments to test interoperability between central bank systems and complex, multilateral use cases spanning different settlement infrastructures. The collaboration will assess synchronisation’s potential to support atomic, real-time Payment versus Payment FX settlement across jurisdictions with different infrastructures, time zones and regulatory frameworks, and to support cross-border Delivery versus Payment use cases.