The five central bank partners in Project Nexus, an initiative by the Bank for International Settlements aimed at interlinking domestic real-time payment systems across borders, have begun a procurement exercise to select a technical network operator.
Nexus is intended to offer a centralized connection to instant payment networks worldwide, utilizing ISO 20022 message specifications and a range of purpose-built APIs. Following a successful proof-of-concept conducted in 2022 with the Eurosystem, Malaysia, and Singapore, the BIS in Singapore has collaborated with the central banks and IPS operators of Indonesia, Malaysia, the Philippines, Singapore, and Thailand to assess the model.
With live implementation approaching, the BIS is reducing its oversight role, transitioning responsibilities to Nexus Global Payments, a company limited by guarantee based in Singapore. This organization is tasked with operationalizing and managing the Nexus scheme to facilitate safe and instant cross-border payments at scale. Throughout this transition, the BIS will support knowledge transfer until the first live transaction occurs.
Nexus Global Payments has been established by the Reserve Bank of India, Bank Negara Malaysia, Bangko Sentral ng Pilipinas, the Monetary Authority of Singapore (MAS), and Bank of Thailand. The European Central Bank and Bank Indonesia, which participated in earlier phases of Nexus, will continue to act as special observers during this operational phase.
The initial jurisdictions involved will provide the capital needed to create and launch the Nexus platform. They intend to broaden membership and participation to additional interested jurisdictions over time, aligning with the vision of developing Nexus into a scalable multilateral model for connecting instant payment systems globally.
Nexus Global Payments has appointed MAS executive Benjamin Lee as the interim director until a permanent director is selected. Additionally, an open procurement process has been initiated to identify and appoint a suitable Nexus Technical Operator (NTO). This external service provider will be responsible for the technical development and ongoing daily operation and security of Nexus.
For more information about the NTO procurement exercise, please find the details here.