The Eurosystem and London Centres of the BIS Innovation Hub, together with the Bank of England, have launched Project Meridian FX, to build on the findings of Project Meridian by focusing on foreign exchange (FX) transactions.
The starting point is the concept of the “synchronisation operator” (SO) developed in the first Meridian project. Meridian FX will test the usability of the SO for different types of assets and technologies. It will also explore additional features that could form part of an SO’s offering, such as those that could help reduce the liquidity needs of participants.
The project will provide insights on how operators of real-time gross settlement (RTGS) systems could enable interoperability with new payments technologies, such as distributed ledger technology (DLT). It will highlight the opportunities that the synchronisation model could unlock, including more innovative and efficient settlement services for a wider range of assets that are settled in central bank money.
By focusing on FX transactions, the project could also offer potential solutions to long-standing issues in settling FX trades, such as the costs, risks and time involved in cross-border transactions.
To achieve its objectives, Meridian FX will build on the technology behind the SO, allowing it to connect two RTGS systems based in different jurisdictions. Meridian FX will also connect an RTGS system with a DLT-based settlement platform, testing how the SO could support interoperability between existing and new ledger technologies. The aim in both scenarios will be for the SO to successfully orchestrate the settlement of a payment versus payment (PvP) FX transaction.
The experiments will take place towards the end of 2024. They will involve connecting Meridian FX’s SO to the three solutions being explored as part of the Eurosystem’s broader exploratory work on wholesale settlement:
the Trigger Solution developed by Deutsche Bundesbank
the TIPS Hash-Link developed by Banca d’Italia
the DL3S DLT Interoperability Solution developed by the Banque de France
The project aims to report on its findings in Spring 2025.
NEWSLETTER SIGN UP
And receive exclusive articles on securities markets
It's been a month since we had our Women In Finance Awards in New York City at the Plaza! Take a look back tab some moments, and nominate for our upcoming awards in Mexico City and Singapore here: https://www.marketsmedia.com/category/events/
4
Citadel Securities told the SEC that trading tokenized equities should remain under existing market rules, a position that drew responses from various crypto industry groups. @ShannyBasar for @MarketsMedia:
SEC Commissioner Mark Uyeda argued that private assets belong in retirement plans, saying diversified alts can improve risk-adjusted returns and that the answer to optimal exposure “is not zero.” @ShannyBasar reporting for @MarketsMedia:
COO of the Year Award winner! 🏆
Discover how Jennifer Kaiser of Marex earned the 2025 Women in Finance COO of the Year recognition.
Related articles
-
Effective prime brokerage is key to unlocking trapped capital and ensuring liquidity during stress.
-
BMW completed the payment outside traditional settlement windows and without manual intervention.
-
This marks the next step in ING’s strategy to use large language models for financial intelligence.
-
The integration delivers a more efficient netted portfolio of exposures, helping boost trading efficiency.
-
Collaboration enhances connectivity across LATAM currencies and deepens SGX FX’s Americas presence.