A group of the world’s most influential central banks, working alongside more than 40 major commercial lenders, is preparing to intensify testing of a digital payments platform designed to modernize how money moves across borders. The initiative, known as the Agora project, marks a significant step in the global race to upgrade international financial infrastructure as geopolitical and technological rivalries reshape the payments landscape.
Spearheaded by the Bank for International Settlements, Agora brings together the New York Federal Reserve and central banks from Europe, Japan, South Korea and Mexico, whose currencies account for the majority of global cross-border transactions. The project is moving into a user-testing phase that will assess how the platform performs outside the laboratory, shifting from theoretical design toward practical application in real-world financial markets.
Cross-border payments today rely on a complex network of correspondent banks, a system that can be slow, opaque and expensive, particularly when transactions involve multiple intermediaries or less widely traded currencies from developing economies. Global policymakers have long sought to address these shortcomings, but progress has lagged behind ambitions. The Financial Stability Board, acting on a mandate from the G20, has made improving international payments one of its top priorities this year after earlier targets were missed.
BIS Deputy General Manager Andréa Maechler described the launch of user testing as a major milestone for Agora, reflecting growing momentum behind the project. She said tokenisation, which involves representing traditional assets in digital form, is shaping the future of global finance and that so-called atomic settlement could fundamentally change cross-border payments by allowing transactions to be approved instantly and simultaneously.
Although Agora is not a direct competitor, it is often compared with mBridge, another cross-border digital payments initiative. The BIS previously oversaw mBridge but withdrew from the project in late 2024, a move that effectively left China in control and sharpened interest in alternative frameworks backed by Western and allied financial authorities.
Commercial banks are playing a central role in the next phase of testing, coordinated by the Washington-based Institute of International Finance. Its president, Tim Adams, said the project is moving beyond theory to examine how tokenised payments could function within existing regulatory, compliance and risk-management structures. He emphasized that technological innovation will only gain traction if it can operate within governance frameworks trusted by regulators and markets alike.
The Agora project is focused on wholesale payments between financial institutions rather than retail transactions made by consumers, distinguishing it from politically sensitive debates over central bank digital currencies for public use. This approach has helped it avoid direct conflict with U.S. President Donald Trump’s vocal opposition to a digital version of the dollar, while still advancing digital settlement technology within the banking system.
The current testing phase is expected to run for about six months, after which findings will be presented to policymakers who will decide whether and how the project should advance toward a formal launch. Future stages could include expanding participation to additional central banks and currencies, particularly those already part of the Continuous Linked Settlement system, such as the Canadian, Australian and New Zealand dollars, as well as major Scandinavian currencies.
Global financial messaging network SWIFT is also involved in Agora, even as it develops its own blockchain-based upgrades, underscoring how traditional financial institutions are increasingly embracing digital innovation. As testing begins, the project is emerging as a key battleground in the effort to define the next generation of cross-border payments and the balance of power in the global financial system.
