The Bank for International Settlements (BIS), together with several European central banks, has successfully demonstrated how wholesale payment systems like RTGS can interoperate for foreign exchange transactions using new technologies, including distributed ledger technology (DLT).
The joint initiative included the BIS, Bank of England, Banque de France, Bank of Italy, Bundesbank, and the European Central Bank. Its core objective was to enable synchronized settlements where asset transfers occur simultaneously, following the “payment-versus-payment” (PvP) model.
At the heart of the Meridian FX project is a synchronization operator — a technically neutral interface designed to coordinate the exchange between payment systems.
The project connected a synthetic version of the UK RTGS system with three experimental DLT platforms developed by the Eurosystem:
- DL3S — developed by Banque de France
- TIPS Hash-Link — developed by Bank of Italy
- Trigger Solution — developed by Bundesbank
In each case, the synchronization operator successfully executed PvP settlements.
Meridian FX also explored value-added features such as liquidity-saving mechanisms, user rules, and transaction limits. Findings indicate that synchronization is possible regardless of asset type or ledger technology, showcasing its broader market potential.
These insights will inform the future development programs of the participating central banks.