Testing is under way on a new technology that completes international transfers in seconds, with the aim of reducing the risk of unpaid receivables. Details have been reported of a proof of concept involving Japan’s Financial Services Minister Katayama (片山) and major banks.
The article reports on a proof of concept for Project Agora, led by the Bank for International Settlements and the Institute of International Finance. Central banks and private-sector financial institutions are testing a system that enables simultaneous settlement of transfers in multiple currencies on an integrated ledger. Participants from Japan include MUFG Bank, Mizuho Bank, SMBC and SBI Shinsei Bank.
The test results indicate that transfers previously taking several days could be completed in seconds, potentially eliminating the need for funds to be held by correspondent banks along the way. The financial impact is described as enabling companies to minimise the working capital held for overseas transactions and immediately redirect it to growth investment.
Blockchain technology is expected to cover not only payment methods but also transactions in financial assets themselves. The article explains that this will involve moving toward “on-chain” processing, in which transaction records, including transfers of rights, are centrally processed on a distributed ledger. Minister Katayama (片山) has expressed particular期待 for putting government bonds on-chain.
The proof of concept involves Mizuho Financial Group, Nomura Holdings, Japan Securities Clearing Corporation and Digital Asset Holdings. It is reported to have begun on 20 April 2026, testing the processing of transactions backed by government bonds on a blockchain.