Project Meridian FX APAC: Executive Summary and Introduction (BOE)

The Bank of England (BOE), Monetary Authority of Singapore and Bank of Thailand published the results of their Project Meridian explorations of how synchronization could support safer and more efficient FX settlement across different central bank money systems. Connecting a Synchronization Operator (SO) prototype with technical partner Partior across three simulated wholesale environments, the project demonstrated atomic bilateral and multilateral net payment-versus-payment settlement without requiring infrastructure convergence. System capabilities—such as authorized third-party access and funds reservation—directly influenced implementation complexity and SO responsibilities. While exception testing confirmed the SO could preserve settlement integrity during errors or outages, real-world constraints remain untested. Finally, the policy workstream distinguished technical atomicity from legal settlement finality, suggesting that internationally developed principles could support consistent cross-jurisdictional oversight. [BOE]

Tik-Tokenisation in Money and Payments (SSRN)

George Pantelopoulos and Martin Walker posted a paper on the Social Science Research Network (SSRN) that examines whether tokenization in money and payments constitutes a new frontier by separating retail commercial bank money from financial market infrastructures (FMIs). The authors conclude that tokenizing retail money is dubious due to added complexities, limited use cases, and financial stability risks. Conversely, tokenizing FMIs offers greater potential to compress layers and improve atomic settlement and collateral efficiency. However, these wholesale benefits depend on broad adoption and common standards, as fragmented implementation risks exacerbating interoperability frictions. Ultimately, the paper suggests tokenization represents an institutional redesign rather than a technological revolution, noting that its purported benefits could be achieved through alternative avenues. [SSRN]

BTW if you want to see a complete database of my DFC-related posts going back years, including many that didn’t make the Daily Digest cut, click here.

FYI I produce a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) plus academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) It goes out via email on the first business day of every month, and if you’re interested in being on the mailing list, please email me at john@kiffmeister.com.