SMBC joins Project Agora to explore tokenized cross-border payments

Project Agora involves BIS and seven central banks globally.

Sumitomo Mitsui Banking Corporation (SMBC) is participating in Project Agora, which explores how tokenization can exchange wholesale border payments.

The project reportedly builds on the unified ledger concept proposed by the BIS, SMBC said in a press release.

It will investigate how tokenized commercial bank deposits can be seamlessly integrated with tokenized wholesale central bank money in apublic-private programmable core financial platform.

Launched by the Bank of International Settlements (BIS), Project Agora involves seven central banks globally: Bank of France as the Eurosystem representative, Bank of Japan, Bank of Korea, Bank of Mexico, Swiss National bank, Bank of England, and the Federal Reserve Bank of New York.

The central banks will work in partnership with a group of privatefinancial firms convened by the Institute of International Finance (IIF).

The public-private partnership seeks to overcome several structural inefficiencies in payments, especially across borders, which add a layer of challenges: different legal, regulatory and technical requirements, operating hours and time zones, SMBC said.