#BIS

14 articles tagged #BIS — curated RWA tokenization coverage.

#ProjectAgora #TokenizedDeposits #Stablecoins #CrossBorderPayments #Tokenization #WholesalePayments #AtomicSettlement #BankOfKorea #Blockchain #BlockchainAnalytics

Infrastructure

Tokenized Deposits in Canada: How Banks Can Build Now

Canadian financial institutions are rapidly advancing the development of tokenized money rails to modernize treasury and payment systems. On September 22, Canada's six largest banks—BMO, CIBC, National Bank, RBC, Scotiabank, and TD—announced a joint initiative to explore Canadian dollar tokenized deposits. This effort follows a September 10 ruling by the Office of the Superintendent of Financial Institutions (OSFI) clarifying that tokenized deposits maintain the same legal status as traditional deposits. Major banks are also participating in international projects like the BIS's Project Agorá and are collaborating on a USD stablecoin issuer targeted for 2027. Domestically, the Bank of Canada is supporting these efforts, building on the success of Project Samara, which saw the country's first tokenized bond settlement. These developments aim to provide 24/7 programmable money, reducing settlement times and intraday credit exposure. By focusing on a unified digital asset infrastructure, Canadian banks intend to maintain control over keys, policy, and data while ensuring interoperability across various blockchain networks.

#TokenizedDeposits #Fireblocks #BIS

fireblocks.com·Oct 13, 20268.0

Infrastructure

Tokenization Has Arrived. What It Means for the Financial System

Tokenization is evolving from a simple digitization of assets into a fundamental redesign of financial infrastructure aimed at reducing operational coordination costs. While traditional finance has long been digital, it remains fragmented across siloed systems for payments, custody, and compliance, leading to inefficiencies like the $1.4 trillion in daily foreign exchange settlement risk identified by the Bank for International Settlements. By moving assets onto programmable infrastructure, institutions can embed financial logic directly into transactions, allowing for simultaneous settlement and compliance. Projects like the BIS-led Project Agorá demonstrate this shift by integrating tokenized commercial and central bank money on shared platforms. The market for tokenized U.S. Treasuries reflects this institutional adoption, growing from $4 billion in early 2025 to nearly $13 billion by Q1 2026. This transition signifies that the primary value of tokenization lies in improving capital efficiency and liquidity management rather than merely creating new asset classes. Ultimately, this shift enables assets to act as active participants in a unified financial environment, paving the way for deeper integration with technologies like artificial intelligence.

#Tokenization #U.S.Treasuries #BIS

ceoworld.biz·Oct 10, 20268.0

Infrastructure

After joining Agorá, Wells Fargo CFO calls for atomic settlement of tokenized deposits

Wells Fargo has officially joined Project Agorá, a Bank for International Settlements (BIS) initiative focused on enhancing cross-border payment efficiency through tokenized deposits and central bank reserves. During the Sibos conference, Wells Fargo CFO Mike Santomassimo emphasized that the future of financial settlement relies on interoperability rather than isolated, single-bank solutions. By participating in this project, the bank aims to move beyond merely digitizing existing payment plumbing to achieve true atomic settlement. The initiative seeks to bridge the gap between siloed tokenized deposit models, allowing for seamless interaction across different DLT platforms. This development is significant for the RWA market as it signals a major institutional shift toward standardized, interoperable infrastructure for tokenized cash. Santomassimo’s comments underscore the industry's growing consensus that closed-loop systems are insufficient for global scale. Ultimately, this collaboration highlights the critical role of central bank-backed tokenization in modernizing international financial transactions.

#TokenizedDeposits #AtomicSettlement #BIS

ledgerinsights.com·Sep 30, 20268.0

Infrastructure

BIS paper finds major gap in Bitcoin onchain transfer estimates

A recent study by the Bank for International Settlements (BIS) reveals that standard onchain metrics for Bitcoin, Ethereum, and stablecoins often provide misleading representations of actual economic activity. Researchers analyzed 100 billion blockchain records and discovered that Bitcoin transfer values can fluctuate by a factor of six depending on whether change outputs are correctly filtered. The report highlights that conventional market capitalization metrics can overstate value by up to four times compared to realized capitalization models. Furthermore, the study notes that Ethereum's complex smart contract ecosystem and the multi-chain nature of stablecoins like USDT make aggregate data difficult to interpret accurately. For instance, USDT on Ethereum is primarily utilized for DeFi, whereas USDT on Tron functions more as a payment and store-of-value asset. These findings suggest that current industry indicators are noisy approximations rather than precise economic data points. This research is critical for the RWA market, as institutional adoption of tokenized assets relies on transparent and reliable data to assess liquidity, usage, and systemic risk.

#Stablecoins #BIS #OnchainData

Cointelegraph — DeFi·Sep 15, 20267.5

Stablecoins

BIS Chief: Stablecoins Unsuitable for Large-Scale Payments…Tokenized Deposits Are the Answer

BIS General Manager Pablo Hernández de Cos recently argued that stablecoins possess fundamental limitations as large-scale payment mechanisms, advocating instead for tokenized deposits. Speaking at the Federal Reserve's Jackson Hole symposium, he suggested that tokenized bank deposits are better suited for everyday transactions while stablecoins may serve niche roles like cross-border payments. This perspective contrasts with U.S. officials who view dollar-pegged stablecoins as a strategic tool to bolster demand for U.S. Treasuries and maintain dollar hegemony. De Cos warned that a mass migration of funds from bank deposits to stablecoins could increase bank funding costs and subsequently raise lending rates for the broader economy. He also highlighted risks regarding the erosion of monetary sovereignty in emerging markets, where widespread stablecoin adoption could undermine local central bank policy transmission. Furthermore, he noted that inconsistent regulatory standards and interoperability challenges across stablecoin issuers complicate their integration into the global financial system. Ultimately, the BIS emphasizes that tokenized deposits offer a more stable path to blockchain-based finance by preserving existing monetary foundations. This debate underscores the growing institutional tension between private stablecoin issuers and central banking authorities regarding the future of digital money.

#Stablecoins #TokenizedDeposits #BIS

finance.biggo.com·Aug 29, 20267.5

U.S. Treasuries

Tokenised Money Market Funds: 2026 Control Model

Tokenized money market funds (MMFs) are evolving from simple digital wrappers into functional settlement and collateral instruments, necessitating a unified approach to fund registers, token records, and cash legs. The BIS and New York Fed have identified these assets as critical for secondary-market liquidity and repo collateral, moving beyond theoretical pilots in regions like Hong Kong. For institutional adoption, managers must ensure that tokenized shares solve specific operational constraints, such as mobilization after local cut-off times or reducing reconciliation delays. A successful implementation requires strict synchronization between the ledger and traditional fund accounting to avoid creating uncontrolled operating models. Boards must clarify which record is legally authoritative to manage subscription, redemption, and corporate action events effectively. Furthermore, robust control frameworks—including verified identity-linked allow-lists and secure recovery processes—are essential to mitigate risks associated with public ledgers. Ultimately, the industry must prioritize measurable improvements in liquidity and collateral utility over mere tokenization for the sake of innovation.

#InstitutionalFinance #BIS #Settlement

globalbankingandfinance.com·Aug 17, 20267.5

Infrastructure

JPMorgan, Citi, UBS and Central Banks Wrap Up Real-Value Trials of Tokenized Cross-Border Payments in Project Agorá

Project Agorá, an initiative led by the Bank for International Settlements Innovation Hub, has successfully concluded real-value testing of tokenized cross-border payments. The trials involved 28 public and private entities, including major global institutions like JPMorgan, Citi, and UBS, alongside five central banks. Participants executed approximately 30 transactions totaling CHF 800,000 across six currencies, including the US dollar, euro, and Japanese yen. By utilizing a shared programmable ledger, the project demonstrated atomic settlement, which eliminates settlement risk by ensuring all asset transfers complete simultaneously. The average settlement time was reduced to 80 seconds, significantly faster than traditional cross-border payment methods. This milestone proves that tokenized commercial bank deposits and central bank reserves can function effectively within a unified, secure infrastructure. The successful execution of these trials highlights the potential for tokenization to modernize global wholesale finance by increasing transparency and reducing operational friction. This development marks a critical step toward institutional adoption of blockchain-based payment systems that maintain the safety of central bank-backed assets.

#CrossBorderPayments #TokenizedDeposits #BIS

crowdfundinsider.com·Aug 3, 20269.5

Infrastructure

JPMorgan, Citi, UBS Testing Tokenized Cross-Border Payments

JPMorgan, Citi, and UBS are among 28 global financial institutions that successfully completed a live pilot of Project Agorá, a blockchain-based platform for cross-border payments. The test processed approximately $1 million in real-value transactions across six major currencies, including the U.S. dollar, euro, and Japanese yen. By utilizing tokenized commercial bank deposits alongside tokenized central bank reserves, the participants achieved an average settlement time of just 80 seconds. This initiative demonstrates the potential for atomic, multi-currency settlement that operates on a 24/7 basis, significantly outperforming traditional payment rails. The platform integrates smart contracts to embed compliance and workflow logic directly into transactions, effectively reducing manual reconciliation and operational friction. By enabling simultaneous foreign exchange settlement, the project also mitigates counterparty risk inherent in current sequential payment systems. This milestone represents a critical step toward modernizing wholesale banking infrastructure through the integration of programmable, tokenized assets.

#JPMorgan #CrossBorderPayments #TokenizedDeposits

watcher.guru·Jul 31, 20269.5

Infrastructure

Project Agorá starts live trials. Lloyds participates in 3 tokenized deposit transactions

Lloyds Banking Group has successfully executed three live tokenized deposit transactions as part of the Bank for International Settlements' Project Agorá. This initiative aims to enhance the efficiency of wholesale cross-border payments by integrating tokenization into the regulated banking framework. By utilizing real money rather than simulations, the project has officially entered its Real-Value Testing phase. Lloyds participated in transactions involving the conversion of Swiss francs into British pounds and euros, demonstrating the ability to execute FX conversion, payment, and settlement simultaneously. This shift from prototype to live testing highlights the potential for tokenized deposits to significantly reduce settlement risk and operational friction. The project involves a broad coalition of eight central banks and over 40 private financial institutions coordinated by the BIS and the Institute of International Finance. These trials represent a critical milestone in proving that tokenized assets can function effectively within existing global financial infrastructures.

#TokenizedDeposits #BIS #WholesalePayments

ledgerinsights.com·Jul 30, 20268.5

U.S. Treasuries

Bank of Korea governor outlines tokenized bond vision, unified ledger plan

Hyun Song Shin, governor of the Bank of Korea, recently advocated for the tokenization of government bonds to enhance market efficiency and reduce operational errors. Speaking at the ECB Forum on Central Banking, Shin highlighted that tokenization simplifies collateral verification and transaction management, positioning it as a critical evolution for financial infrastructure. Data from RWA.xyz underscores the current scale of this sector, noting that U.S. Treasury debt accounts for $14.6 billion of the total $31.7 billion RWA market. The Bank of Korea is actively pursuing these advancements through 'Project Hangang,' a pilot project integrating wholesale CBDCs and tokenized deposits on a unified ledger. A recent Bank for International Settlements (BIS) report supports this trajectory, identifying lower bid-ask spreads in tokenized bonds compared to traditional counterparts. While the BIS acknowledges the potential for financial innovation, it emphasizes that regulatory and infrastructure hurdles must be resolved to achieve widespread adoption. This shift toward unified ledger systems represents a significant step in modernizing sovereign debt management and broader financial settlement processes.

#RWA #TokenizedBonds #BIS

cryptonews.net·Jul 5, 20268.5

Stablecoins

Crypto News Today (June 29): BTC Loses $60K Again, EU Goes After MiCA Violators Following Binance Cull and the BIS Makes Stark Stablecoin Warning

The European Banking Authority has proposed a stringent penalty framework for issuers of asset-referenced tokens and electronic money tokens under the MiCA regulation. Companies found in violation of these rules could face fines reaching up to 12.5% of their annual revenue or twice the profit gained from the infraction. This regulatory move coincides with a broader push by the European Union to enforce strict compliance regarding consumer protection and reserve management for crypto service providers. Simultaneously, the Bank for International Settlements has issued a stark warning regarding the $316 billion stablecoin market, citing risks to global monetary sovereignty and bank funding stability. The BIS argues that private stablecoins lack the institutional rigor required for large-scale monetary functions and suggests that tokenized commercial bank deposits are a safer alternative. These developments represent a significant tightening of the regulatory landscape for RWA-adjacent digital assets in Europe and globally. As the July 1 MiCA deadline approaches, the industry faces increased pressure to secure licenses and align with these new transparency and governance standards.

#Stablecoins #MiCA #Regulation

tradingview.com·Jun 29, 20267.5

Stablecoins

BIS identifies stablecoin gaps. Regulation and innovations are already closing them

The Bank for International Settlements (BIS) has shifted its stance on stablecoins, moving from a dismissive critique of their soundness to a more constructive, prescriptive approach. While the BIS continues to highlight persistent challenges such as financial integrity, governance on permissionless rails, and blockchain fragmentation, it now emphasizes a two-pronged strategy involving coordinated regulation and the development of interoperable platforms. This strategy centers on the BIS unified ledger concept and Project Agorá, which aim to integrate tokenized commercial and central bank money. Notably, the report overlooks rapid private sector advancements that are already addressing these identified gaps. For instance, the US Hazel Network has introduced programmable compliance controls and mechanisms for deposit-to-stablecoin transitions that mitigate fragmentation. Furthermore, the GENIUS Act contains language that may provide a pathway for stablecoin elasticity, contrasting with more restrictive frameworks in Europe and the UK. These developments indicate that the market is proactively solving the structural deficiencies previously identified by global regulators. This evolution signals a maturing RWA landscape where private innovation and regulatory frameworks are beginning to align to create more robust digital monetary systems.

#Stablecoins #GENIUSAct #BIS

Ledger Insights·Jun 23, 20267.0

Infrastructure

BIS Project Agorá shows tokenized payments can settle in seconds

The Bank for International Settlements (BIS) has concluded a two-year initiative known as Project Agorá, which successfully tested a prototype for cross-border wholesale payments involving seven central banks and over 40 private financial institutions. By utilizing a two-layer blockchain architecture, the project enables atomic settlement of tokenized central bank reserves and commercial bank deposits in seconds. This approach addresses the inefficiencies of the current global payment system, which processed $195 trillion in 2024 and is expected to reach $320 trillion by 2032. By integrating anti-money laundering and fraud screening in parallel, the system significantly reduces processing times and false-positive rates while maintaining the traditional two-tier banking structure. The prototype ensures financial stability by preserving the singleness of money, distinguishing it from decentralized stablecoin alternatives. As the project moves toward real-value testing, it highlights a major shift in how global financial infrastructure may adopt tokenization to modernize international trade. This collaboration represents one of the most significant efforts to date to harmonize central bank and private sector ledgers for 24/7 global liquidity.

#Blockchain #Tokenization #BIS

Cointelegraph — Tokenization·Jun 20, 20269.0

Stablecoins

BIS maps stablecoin yield models. Do interest bans target the right one?

The Bank for International Settlements (BIS) has released a bulletin categorizing stablecoin yield models into reserve-based and activity-based structures, highlighting significant differences in risk profiles. Reserve-based models, such as Coinbase's USDC implementation, pass through returns from reserve assets and closely track the federal funds rate. Conversely, activity-based models like Binance's Simple Earn deploy customer funds into lending and trading operations, with yields driven primarily by crypto market volatility rather than benchmark interest rates. During 2024, Binance USDT borrowing rates reached 40-50%, reflecting high counterparty risk due to the commingling of assets. The BIS warns that current regulatory interest prohibitions in the EU and US often target the lower-risk reserve-based model while potentially overlooking the systemic risks inherent in activity-based platforms. This distinction is critical for the RWA market as it clarifies how stablecoin yields are generated and where hidden counterparty exposures reside. The collapse of Genesis and the subsequent impact on Gemini Earn users serve as a cautionary example of the risks associated with non-segregated client funds in activity-based models.

#Stablecoins #USDC #USDT

Ledger Insights·Jun 20, 20267.0

#BIS

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