41 FIRMS JOIN BIS PROJECT AGORA TO ADVANCE UNIFIED LEDGER APPLICATIONS

Last updated: June 19, 2025, 22:09 | Written by: Chris Larsen

Imagine a world where cross-border payments are as seamless as sending an email. Project Agora, the cross-border payments project proposed by the Bank for International Settlements (BIS), has received the backing of 41 private financial institutions. Announced earlier this year, the project has now reached the design stage. The objective of Project Agora is to examine how tokenized commercial bank deposits can be integratedWhere transaction costs are negligible, and delays are a thing of the past.This vision is edging closer to reality as 41 private financial institutions have joined the Bank for International Settlements (BIS) Project Agora, marking a significant milestone in the exploration of unified ledger technology. Today the Institute of International Finance (IIF) released the names of 41 firms selected to participate in the public private tests of Project Agor . It s an ambitious project initiated by the BIS to modernize correspondent banking using a unified ledger, tokenized deposits and wholesale CBDC from seven central banks.Launched in April by the BIS in collaboration with seven central banks, Project Agora aims to revolutionize the financial landscape by seamlessly integrating tokenized commercial bank deposits with tokenized wholesale central bank money.This ambitious initiative builds upon the BIS's unified ledger concept, envisioning a public-private programmable core financial platform that could transform how payments and financial services are delivered globally. The Bank for International Settlements (BIS ) Project Agora has progressed to the design stage with the onboarding of 41 private financial firms. The project, launched in April by the BIS and seven central banks, is looking at how tokenized commercial bank deposits can be integrated with tokenized wholesale central bank digital currenciesThe participation of these 41 firms signifies a strong vote of confidence in the potential of this innovative approach to modernize correspondent banking and foster greater efficiency and interoperability within the financial system. The Bank for International Settlements (BIS) has selected 41 private-sector participants to join Project Agora, an initiative that explores how tokenized deposits can be integrated with CBDCs to ease payments and cross-border transfers. Elsewhere, the Qatar Financial Centre has activated its Digital Assets Lab and selected the first batch ofThis article will delve deep into the intricacies of Project Agora, its objectives, the technology behind it, and the potential impact it could have on the future of finance. Unified Ledger Concept for Seamless Integration. Project Agor builds upon the BIS s unified ledger concept, which seeks to integrate tokenized commercial bank deposits with tokenized wholesale central bank money. The initiative envisions a public-private programmable core financial platform that could revolutionize payment processes.We'll also examine the role of the participating firms and address common questions about this groundbreaking initiative.

What is BIS Project Agora and Why Does It Matter?

Project Agora is a groundbreaking initiative spearheaded by the Bank for International Settlements (BIS) that aims to revolutionize the financial system by leveraging the power of unified ledgers, tokenized deposits, and wholesale Central Bank Digital Currencies (CBDCs).The core objective is to create a more efficient, transparent, and interoperable financial ecosystem, particularly for cross-border payments.Let's break down why this project is so important.

The Current State of Cross-Border Payments: Challenges and Inefficiencies

Traditional cross-border payments are often plagued by a number of issues:

High costs: Intermediary banks and correspondent banking relationships lead to hefty fees.
Slow processing times: Transactions can take days to complete due to multiple intermediaries and varying regulatory requirements.
Lack of transparency: Tracking payments across borders can be difficult, making it hard to know exactly where funds are at any given time.
Limited access: Not everyone has access to cross-border payment services, particularly in developing countries.

These inefficiencies hinder international trade, investment, and remittances, ultimately impacting economic growth.Project Agora seeks to address these challenges head-on by creating a more streamlined and accessible system.

The Unified Ledger Concept: A Paradigm Shift

The heart of Project Agora lies in the unified ledger concept. The project builds on the unified ledger concept proposed by the BIS and will investigate how tokenised commercial bank deposits can be seamlessly integrated with tokenised wholesale central bank money in a public-private programmable core financial platform. This could enhance the functioning of the monetary system and provide new solutionsThis concept envisions a single, shared platform where different types of digital assets, including tokenized commercial bank deposits and wholesale CBDCs, can coexist and interact seamlessly.This contrasts with the current fragmented system, where different payment rails operate in silos.

Imagine a scenario where a business in the United States needs to pay a supplier in Europe.With Project Agora, the transaction could be executed directly on the unified ledger, bypassing the need for multiple intermediary banks and associated fees. The Bank for International Settlements (BIS ) Project Agora has progressed to the design stage with the onboarding of 41 private financial firms. The project, launched in April by the BIS andThe payment would be settled almost instantly, with full transparency and traceability.

This is achieved through the use of tokenization, which involves representing real-world assets, like bank deposits or central bank money, as digital tokens on a blockchain or distributed ledger.These tokens can then be transferred and exchanged on the unified ledger in a secure and efficient manner.

The Role of Tokenized Deposits and Wholesale CBDCs

Project Agora focuses on integrating two key types of digital assets:

Tokenized Commercial Bank Deposits: These are digital representations of deposits held at commercial banks, allowing for on-chain transfer and settlement.
Wholesale CBDCs: These are digital currencies issued by central banks, specifically designed for use by financial institutions for interbank payments and settlement.

By integrating these two types of assets on a unified ledger, Project Agora aims to create a holistic system that encompasses both commercial and central bank money.This allows for greater efficiency and flexibility in payment processing, as well as enhanced risk management capabilities.

The 41 Participating Firms: A Diverse Ecosystem

The selection of 41 private financial firms to participate in Project Agora is a testament to the industry's growing interest in the potential of unified ledger technology.These firms represent a diverse range of institutions, including:

Large international banks
Regional banks
Payment service providers
Technology companies
Fintech startups

This diversity ensures that Project Agora benefits from a wide range of perspectives and expertise.The participating firms will play a crucial role in designing, testing, and implementing the unified ledger platform.

The Role of the Institute of International Finance (IIF)

The Institute of International Finance (IIF) played a significant role in the selection process, releasing the names of the 41 firms chosen to participate in the public-private tests of Project Agora.The IIF's involvement underscores the importance of collaboration between the public and private sectors in driving financial innovation.

What Will the Participating Firms Do?

The 41 participating firms will actively contribute to Project Agora in several ways:

Designing the Unified Ledger Platform: Working with the BIS and central banks to define the technical specifications and functionalities of the platform.
Developing Use Cases: Identifying and testing specific applications of the unified ledger, such as cross-border payments, trade finance, and securities settlement.
Testing and Experimentation: Conducting real-world trials to evaluate the performance, scalability, and security of the platform.
Providing Feedback: Sharing their insights and experiences to help refine and improve the design of the unified ledger.

Their practical involvement is critical to ensuring that Project Agora is not just a theoretical exercise, but a viable solution that can be implemented in the real world.

Project Agora: Design Stage and Key Objectives

Project Agora has now progressed to the design stage, marking a significant step forward in its development.This stage involves defining the technical architecture, functionalities, and governance framework of the unified ledger platform.

Key Objectives of the Design Stage

The design stage of Project Agora is focused on achieving several key objectives:

Defining the Technical Architecture: Determining the underlying technology infrastructure, including the type of distributed ledger or blockchain to be used, the consensus mechanism, and the security protocols.
Developing Functional Specifications: Specifying the functionalities of the platform, such as payment processing, asset tokenization, and identity management.
Establishing Governance Framework: Defining the rules and processes for governing the unified ledger, including participant onboarding, transaction validation, and dispute resolution.
Ensuring Interoperability: Designing the platform to be interoperable with existing payment systems and other financial infrastructure.
Addressing Regulatory Compliance: Ensuring that the platform complies with all relevant regulations and legal requirements.

The Importance of Public-Private Collaboration

The success of Project Agora hinges on effective collaboration between the public and private sectors.Central banks bring their expertise in monetary policy and financial regulation, while private firms contribute their technological innovation and market knowledge.This collaborative approach ensures that the unified ledger platform is both technically sound and commercially viable.

Potential Benefits and Challenges of Project Agora

Project Agora holds immense potential to transform the financial landscape, but it also faces several challenges that need to be addressed.

Potential Benefits

Reduced Costs: Streamlining payment processes and eliminating intermediaries can significantly reduce transaction costs.
Faster Processing Times: Real-time settlement on the unified ledger can dramatically reduce processing times, making payments faster and more efficient.
Increased Transparency: The shared and immutable nature of the ledger provides greater transparency into payment flows, reducing the risk of fraud and errors.
Enhanced Interoperability: The unified ledger can facilitate seamless integration between different payment systems and financial institutions.
Financial Inclusion: By making cross-border payments more accessible and affordable, Project Agora can promote financial inclusion, particularly in developing countries.
Innovation: The programmable nature of the unified ledger can enable the development of new and innovative financial services.

Potential Challenges

Technical Complexity: Building and maintaining a unified ledger platform is technically complex and requires significant expertise.
Security Risks: Ensuring the security and integrity of the ledger is paramount, as any vulnerabilities could be exploited by malicious actors.
Regulatory Uncertainty: The regulatory landscape for digital assets and CBDCs is still evolving, which creates uncertainty for the adoption of unified ledger technology.
Data Privacy: Balancing the need for transparency with the protection of sensitive data is a key challenge.
Scalability: The unified ledger must be able to handle a large volume of transactions without compromising performance.
Adoption: Widespread adoption of the unified ledger requires buy-in from a wide range of stakeholders, including banks, payment providers, and regulators.

Addressing these challenges will be crucial to realizing the full potential of Project Agora and ensuring its long-term success.

Project Agora and the Future of Finance

Project Agora represents a significant step towards a more efficient, transparent, and inclusive financial system.While it is still in its early stages, the project has the potential to fundamentally transform how payments are made and financial services are delivered globally.

Modernizing Correspondent Banking

One of the key objectives of Project Agora is to modernize correspondent banking, which is the system used by banks to make cross-border payments.By leveraging unified ledger technology, Project Agora can eliminate many of the inefficiencies and costs associated with traditional correspondent banking relationships.

This could have a particularly significant impact on developing countries, where access to correspondent banking services is often limited and expensive.

The Role of Central Banks in the Digital Age

Project Agora also highlights the evolving role of central banks in the digital age.As digital currencies and distributed ledger technology become more prevalent, central banks are exploring ways to harness these innovations to improve the efficiency and stability of the financial system.

The involvement of seven central banks in Project Agora demonstrates a commitment to exploring the potential of CBDCs and unified ledgers to modernize the financial infrastructure.

Beyond Payments: Exploring New Use Cases

While Project Agora is primarily focused on payments, the unified ledger technology it is exploring has the potential to be applied to a wide range of other financial services, including:

Trade Finance: Streamlining trade finance processes and reducing the risk of fraud.
Securities Settlement: Accelerating the settlement of securities transactions and reducing counterparty risk.
Supply Chain Finance: Improving the efficiency and transparency of supply chain finance.
Identity Management: Creating a secure and interoperable digital identity system.

As the technology matures and adoption grows, we can expect to see even more innovative applications of unified ledgers emerge.

Common Questions About Project Agora

Here are some frequently asked questions about Project Agora:

What is a unified ledger?

A unified ledger is a shared, distributed database that allows different types of digital assets to coexist and interact seamlessly.It provides a single, consistent view of asset ownership and transaction history.

What are tokenized deposits?

Tokenized deposits are digital representations of deposits held at commercial banks.They can be transferred and exchanged on a blockchain or distributed ledger in a secure and efficient manner.

What is a wholesale CBDC?

A wholesale CBDC is a digital currency issued by a central bank, specifically designed for use by financial institutions for interbank payments and settlement.

How does Project Agora improve cross-border payments?

Project Agora streamlines cross-border payments by eliminating intermediaries, reducing transaction costs, and accelerating settlement times.It also provides greater transparency and traceability of payment flows.

What are the potential risks of Project Agora?

Potential risks include technical complexity, security vulnerabilities, regulatory uncertainty, data privacy concerns, and scalability challenges.

When will Project Agora be implemented?

Project Agora is currently in the design stage.The timeline for implementation will depend on the progress of the design and testing phases, as well as regulatory developments.

Conclusion: A Promising Step Towards the Future of Finance

The participation of 41 firms in BIS Project Agora to advance unified ledger applications marks a pivotal moment in the evolution of the financial system.This initiative, driven by the BIS and supported by seven central banks, holds the promise of transforming cross-border payments and other financial services by leveraging the power of tokenization and the unified ledger concept.While challenges remain, the potential benefits – including reduced costs, faster processing times, increased transparency, and greater financial inclusion – are significant.

As Project Agora progresses through the design and testing phases, it will be crucial for stakeholders to collaborate and address the technical, regulatory, and security challenges that lie ahead.By working together, the public and private sectors can unlock the full potential of unified ledger technology and create a more efficient, resilient, and inclusive financial system for the future.

Keep an eye on the developments of Project Agora as it unfolds.It represents a fundamental shift in how we think about money and payments, and it has the potential to impact everyone, from individuals to businesses to governments.