Project Nexus, aiming to revolutionize international money transfers, is stepping into its operational phase with five central banks taking the lead. Initiated by the Bank for International Settlements (BIS), the project now entrusts these institutions with long-term management. The initiative aims to streamline cross-border payments by linking domestic instant payment systems through a shared architecture.
Utilizing ISO 20022 messaging standards and custom-designed APIs, Project Nexus seeks to enable individuals and businesses in participating countries to send money instantly, securely, and at a low cost across borders, just like they can domestically. Following successful technical trials involving central banks from Europe and Southeast Asia in 2022, the BIS has collaborated with the monetary authorities of Indonesia, Malaysia, the Philippines, Singapore, and Thailand to refine this model.
Now, as Nexus prepares for its live deployment, responsibility is shifting to Nexus Global Payments (NGP), a non-profit entity based in Singapore. NGP will be responsible for operating and expanding the network while initial funding and leadership comes from the founding central banks: Bank Negara Malaysia, Bangko Sentral ng Pilipinas, the Monetary Authority of Singapore, the Bank of Thailand, and the Reserve Bank of India. The European Central Bank and Bank Indonesia will remain involved as observers.
To support the transition, the BIS will assist with knowledge transfer and technical onboarding until the platform is launched. The next crucial step is selecting a Nexus Technical Operator (NTO) through an open procurement process. This external firm will take over the technical buildout and manage day-to-day network functioning and cybersecurity.
In the interim, MAS executive Benjamin Lee has been appointed interim director of NGP while the search continues for a permanent leader to guide the organization in its early stages. The founding members hope to eventually open participation to more jurisdictions, turning Nexus into a global standard for real-time cross-border payments.