The Bank of England, the Monetary Authority of Singapore, and the Bank of Thailand: Project Meridian FX APAC

The Bank of England, the Monetary Authority of Singapore, and the Bank of Thailand today published the findings from their collaboration on foreign exchange (FX) settlement under Project Meridian FX APAC.^{footnote [1]}

The project showed that synchronisation – a service that coordinates movements of central bank money – could be one approach to supporting interoperability across wholesale settlement environments built on different technologies and operating models. This marks significant progress in making cross-border FX transactions safer and more efficient, and supporting interoperability as different forms of money evolve in different ways. In light of the Bank of England’s plans to launch a live synchronisation interface in 2028,^{footnote [2]} the findings provide valuable insight into how the approach could be developed into a live service.

Building on the earlier work,^{footnote [3]} Project Meridian FX APAC tested payment-versus-payment FX settlement^{footnote [4]} and multilateral net FX across the three central banks’ test environments, spanning both Real-Time Gross Settlement and Distributed Ledger Technology-based settlement systems. The project encompassed a wider range of currencies, technologies, infrastructures and time zones. Partior, the project’s delivery partner, developed, integrated and tested the Synchronisation Operator^{footnote [5]} prototype for the trial.

The trial demonstrated that synchronised settlement can be achieved across central bank systems with different technologies and capabilities, while identifying the requirements and trade-offs involved. They also demonstrated how multilateral net FX settlement can support banks in using their liquidity more efficiently by netting payments against each other.

The project also examined the legal, regulatory and oversight considerations for applying synchronised FX settlement across diverse wholesale settlement systems. The analysis was informed by perspectives from the Reserve Bank of Australia and Bangko Sentral ng Pilipinas, who participated as observer central banks.

The project’s findings and insights are published across three complementary reports: Introduction and Executive Summary, Technical Report, and Policy Report. Together, they set out the experimental results, key technical findings and policy considerations.

These results provide insights for further exploration of synchronisation as a means of enabling safer and more efficient FX settlement across diverse wholesale settlement systems. Future work could involve extending the existing approach to additional jurisdictions and industry participants, a wider range of currencies and transaction scenarios, and further consider the legal arrangements needed in practice.

Tom Mutton, Executive Director of Payments, Innovation and Fintech at the Bank of England, said, ‘Innovation has the greatest impact when it addresses real world challenges. Project Meridian FX APAC provides practical evidence of how synchronised settlement could help reduce risk and improve efficiency in cross-border FX transactions. The results provide a strong foundation for further collaboration as we explore how this approach could be developed towards real-world use’.

Kenneth Gay, Chief FinTech Officer at the Monetary Authority of Singapore, said, ‘Cross-border settlement increasingly takes place across systems built on different technologies and operating models. Project Meridian FX APAC has shown how synchronisation could help enable PvP settlement across these diverse environments, reducing settlement risk while supporting greater interoperability’.

Pucktada Treeratpituk, Director of Payment Systems and Financial Technology Policy Department at the Bank of Thailand, said, ‘Project Meridian FX APAC successfully demonstrated that synchronisation can work across diverse wholesale settlement systems, making cross-border FX safer and more efficient while preserving trust in central bank money. The insights on technical integration, operating models and regulatory considerations established a practical foundation for modernising wholesale settlement infrastructure’.

About the Bank of England

The Bank of England, established in 1694, is the central bank of the United Kingdom. It is responsible for maintaining monetary and financial stability. In this capacity, the Bank of England undertakes a range of functions, including the implementation of monetary policy, oversight of payment systems, prudential regulation of financial institutions, and the issuance of currency. The Bank of England also plays a key role in safeguarding financial stability through its work on systemic risk, resolution frameworks, and market operations. In relation to UK payments, the Bank of England performs a number of operational functions, including acting as the operator of the UK’s Real-Time Gross Settlement (RTGS) system and the CHAPS payment system.

About the Monetary Authority of Singapore

The Monetary Authority of Singapore (MAS) is Singapore’s central bank and integrated financial regulator. As a central bank, MAS promotes sustained, non-inflationary economic growth through the conduct of monetary policy and close macroeconomic surveillance and analysis. It manages Singapore’s exchange rate, official foreign reserves, and liquidity in the banking sector. As an integrated financial supervisor, MAS fosters a sound financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors and financial market infrastructure. It is also responsible for well-functioning financial markets, sound conduct, and investor education. MAS also works with the financial industry to foster the growth of Singapore as an international financial centre.

About the Bank of Thailand

The Bank of Thailand (BOT) is the central bank and regulator of financial services in Thailand. The BOT is responsible for maintaining monetary stability, financial institution system stability and payment systems stability. In relation to Thailand payments, the BOT functions as the operator of the Bank of Thailand Automated High-value Transfer Network (BAHTNET), which constitutes a core financial infrastructure facilitating high-value funds transfer on a RTGS basis.

For media queries, please contact:

Bank of England

Press Enquiries

Tel: 020 3461 4411

Email: press@bankofengland.co.uk

Monetary Authority of Singapore

Hidayah Rahim

Deputy Director (Communications)

Tel.: +65 64225609

Email: hidayah_rahim@mas.gov.sg

Bank of Thailand

Payment Systems and Financial Technology Policy Department

Tel: +66 356 7077

Email: FinTechDept@bot.or.th