Europe’s Target Settlement system is set to join Project Nexus, an initiative by the Bank for International Settlements aimed at connecting domestic real-time payment networks across borders.
Nexus aims to establish a centralized single connection for instant payment networks worldwide, utilizing ISO 20022 message specifications and a suite of purpose-built APIs.
Following a successful proof-of-concept between the Eurosystem, Malaysia, and Singapore in 2022, 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 and transition towards a live implementation of Nexus.
In its exploratory efforts to link Target Instant Payment Settlement with other fast payment systems, the Eurosystem has now indicated its intention to join the project, according to the BIS.