The five central banks collaborating on Project Nexus will set up a managing entity called the Nexus Scheme Organisation (NSO).
Based in Singapore, the NSO will oversee the project as it moves towards live implementation stages.
Project Nexus is designed to enhance cross-border payment efficiency by linking various domestic instant payment systems on a global scale.
The project is a collaboration between the Bank for International Settlements (BIS) Innovation Hub and central banks from India, Malaysia, the Philippines, Singapore, and Thailand.
BIS, while providing technical advice, will not have any ownership or management role in the NSO.
The European Central Bank recently announced its intention to join Nexus as a special observer, further expanding the project’s reach.
The regulator will explore potential connections between its TARGET Instant Payment Settlement system and other fast payment networks.
The Eurosystem and the Central Bank of Indonesia are currently special observers, having contributed to earlier stages of the project.
To support the project, BIS has released detailed technical documentation, including implementation guides for each type of participant, ISO 20022 message, and API specifications to ensure the project meets international standards and supports scalability for future participants.
Featured image credit: LinkedIn post by Jo Yeo, Director and Division Head, Payments Development and Data Connectivity Office, Monetary Authority of Singapore (MAS)
