Project Nexus advances instant cross-border payments blueprint
The Bank for International Settlements (BIS) announced that phase three of Project Nexus, which is aimed at enhancing cross-border payments by connecting multiple domestic instant payment systems (IPS) globally, is now complete. The next phase will see Bank Negara Malaysia, Bangko Sentral ng Pilipinas, the Monetary Authority of Singapore, the Bank of Thailand and domestic IPS operators – who worked together in phase three – joined by the Reserve Bank of India, expanding the potential user base to India’s Unified Payments Interface (UPI), the world’s largest IPS. Bank Indonesia will continue its association with the project with special observer status. Nexus is designed to standardize the way domestic IPS connect to one another. Rather than an IPS operator building custom connections for every new country to which it connects, the operator only needs to make one connection to Nexus. This single connection would allow the IPS to reach all other countries in the network. [Read more at the BIS]
First trials with the Trigger Solution successfully settled
As part of the Eurosystem exploratory work, the first two trials with the Deutsche Bundesbank’s Trigger Solution were successfully settled. The use case comprised the issuance and primary distribution of a commercial paper with the use case team Clearstream as a market distributed ledger technology (DLT) operator, and two market participants (DekaBank and DZ Bank). The exploration was conducted as a trial in the participants’ production systems and ultimately resulted in real and final bookings in TARGET, the Eurosystem’s payment system, by using the Trigger Solution. The Trigger Solution links DLT platforms operated by the market with the traditional Eurosystem payment system (TARGET), thus enabling the direct settlement of DLT-based wholesale transactions in central bank money on participants’ existing RTGS accounts. [Read more at the Bundesbank]
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