The Bank of England, the Monetary Authority ofSingapore (MAS), and the Bank of Thailand are exploring how synchronizedsettlement mechanisms could streamline cross-border FX transactions, makingthem faster, more secure, and fully interoperable.Digital assets meet tradfi in London at the fmls25Experimenting With New FX InfrastructureThe initiative builds on insights from ProjectMeridian FX and will initially use simulated versions of the central banks’Real Time Gross Settlement (RTGS) systems alongside Distributed LedgerTechnology (DLT)-based environments. The ultimate goal is to enable atomic, real-time FXtransactions—payments that are completed fully and simultaneously acrosssystems, reducing risk and delay.By testing synchronized settlement, the central banksaim to enhance Payment versus Payment (PvP) FX settlements and explore Deliveryversus Payment (DvP) use cases in cross-border environments. These mechanisms could allow currencies to beexchanged safely and instantly, even across different time zones,infrastructures, and regulatory frameworks.International Collaboration for Tokenized FinanceThe project also reflects a broader push to support tokenizedfinancial systems and open, interoperable networks. If successful, thisinitiative could lay the groundwork for a new era of cross-border financialtransactions. Real-time, synchronized FX settlements would reduceoperational risk, speed up payments, and create a more efficient globalfinancial ecosystem.The collaboration signals a clear trend: central banksare actively exploring digital and tokenized solutions to modernize traditionalpayment systems, ensuring they remain effective in an increasingly global andtechnologically complex marketplace.Expect ongoing updates as this story evolves.This article was written by Jared Kirui at www.financemagnates.com.