BoE, Singapore and Thailand Complete Blockchain FX Settlement Trials

The Bank of England (BoE), Monetary Authority of Singapore (MAS), and Bank of Thailand (BOT) have completed cross-border foreign exchange (FX) settlement trials under Project Meridian FX APAC. 

This was expected to test how traditional banking networks and blockchain systems can work together to settle currency payments across different countries.

According to a joint statement released on Friday, November 13, the experiments used a prototype developed by financial technology company Partior. 

The system connected different payment networks and coordinated currency transfers between them. The trials covered traditional central bank payment systems and networks built using blockchain technology.

How the Cross-Border Payment System Works

According to the release, one of the main areas tested was payment-versus-payment (PvP) settlement. This is a process that ensures both sides of a currency exchange happen together.

For example, when a bank sends US dollars to another bank in exchange for Singapore dollars, both payments are completed as part of the same process. This reduces the risk of one bank sending money without receiving the currency it expects.

Partior’s Synchronization Operator helped manage this process by matching payment instructions, arranging the reservation of funds, checking whether both sides were ready, and starting the settlement.

The trials also examined multilateral net settlement. This method allows banks to offset payments they owe against payments they are expected to receive. Rather than making every payment separately, banks can settle the remaining amount after calculating what they owe each other. This could reduce the amount of money banks need to keep available for international transactions.

The researchers also tested how the system would respond to payment failures, insufficient funds, and temporary interruptions. The results showed that coordinated settlement continued to work under all the failure conditions examined.

However, the experiments did not cover longer system outages, differences in banking hours across countries, or actual commercial transactions.

$1.2 Trillion in FX Settlements Remain Exposed to Risk

The trials come as banks continue to face challenges when exchanging currencies across borders. 

A September survey by the Global Foreign Exchange Committee found that average daily foreign exchange settlement obligations reached $14.4 trillion across 49 financial institutions.

Of this amount, payment-versus-payment transactions accounted for $4.8 trillion. However, about $1.2 trillion, representing 8% of total settlement obligations, was completed without measures to reduce settlement risk. The survey also found that 84% of these unprotected transactions could not qualify for PvP settlement.

This means many currency transactions still expose banks to the possibility of sending money without receiving the other side of the exchange.

Tom Mutton, the Bank of England’s executive director of payments, innovation and fintech, said the project provided “practical evidence of how synchronized settlement could help reduce risk and improve efficiency in cross-border FX transactions.”

BoE Plans Live Synchronization Service in 2028

Following the trials, the Bank of England reiterated its plan to launch a live synchronization interface in 2028. The service is expected to build on the findings from Project Meridian FX APAC. Singapore and Thailand have not announced similar launch plans.

Beyond the technical tests, the project also examined the rules needed to make cross-border settlement work between different countries. Its policy report raised questions about who would be responsible when payments fail, how completed settlements would receive legal recognition, and how operators should be supervised.

The report also discussed cross-border data sharing and the responsibilities of companies operating the synchronization systems. It warned that additional services, such as holding funds or calculating net payment positions, could bring different regulatory requirements.

The Reserve Bank of Australia and Bangko Sentral ng Pilipinas participated as observers during the discussions.

Other Financial Institutions Explore Blockchain FX Settlement

Meanwhile, these trials are taking place as other financial institutions explore ways to use blockchain for international payments.

In June, Circle, the company behind the USDC stablecoin, said it was partnering with Nomura Securities to develop a foreign exchange settlement platform for Japanese businesses, with a planned rollout by 2027. 

The platform is intended to use blockchain-based payments to help businesses move money across borders without waiting through lengthy banking processes.

Meanwhile, Chainlink has joined more than 50 financial institutions in Project Pangea, which aims to develop faster foreign exchange settlement using regulated euro and Korean won stablecoins. The project includes South Korean banking groups and Qivalis, a consortium representing 37 European banks.

NEW: Chainlink & multinational banking consortia launch Project Pangea to develop a novel solution redefining international FX markets.

Pangea brings together 50+ banks, representing $10+ trillion AUM, to unlock T+0 cross-border settlement via Chainlink & ISO 20022 standards 🧵 pic.twitter.com/hcEjxKthd6

— Chainlink (@chainlink) June 23, 2026

These efforts are separate from Project Meridian, but they also focus on improving how financial institutions move money between countries. Hong Kong has also introduced round-the-clock settlement using tokenized deposits under Project Ensemble, involving 12 banks and 20 industry participants.

Together, these developments show how banks and financial institutions are testing new ways to connect traditional payment networks with blockchain technology while addressing the risks and delays associated with international currency transfers.

Also Read: Thailand SEC Drafts Stablecoin Rules With 5M Baht Daily Caps