HomeCBDCBIS ProjectsRevamping Financial Market Infrastructures with Project FUSSE

Revamping Financial Market Infrastructures with Project FUSSE

Project FuSSE, also known as Fully Scalable Settlement Engine, is a BIS Innovation Hub initiative aimed at modernizing financial market infrastructures to meet the demands of the digital age. The traditional systems are facing numerous challenges in the rapidly digitizing economy. FuSSE offers an open-source solution to address these evolving demands.

The digitalization and rapid advancement of technology have significantly transformed the financial landscape. The increasingly digital economy has brought more people into the system and created a growing need for faster settlements and more transactions. However, this rapid transformation is accompanied by several challenges. The cost of updating financial market infrastructures is rising, and integrating innovative solutions to ensure seamless financial services is becoming complex. Additionally, there is a need for these infrastructures to be flexible and adaptable on an international scale, which most systems currently lack.

Project FuSSE aims to mitigate the transition costs and guide the evolution of the next generation of financial infrastructures. The goal is to develop an open-source building block that can be easily integrated into various use cases. FuSSE aims to achieve versatility by being applicable to payment systems and securities settlements. It also emphasizes scalability to accommodate more transactions, participants, and asset types. Efficiency is another key design goal, making FuSSE accessible to central banks regardless of their existing infrastructure. Security is crucial, and FuSSE’s architecture addresses confidentiality, integrity, and availability concerns while adopting a crypto agile approach for future-proofing.

Project FuSSE is the first collaboration between the BIS and the Inter-American Development Bank. The project will benefit from the expertise of both institutions and involve central banks in Latin America and the Caribbean at a later stage. The BIS’s technical experimentation experience and global scope are complemented by the IDB’s knowledge of regional systems and their interactions, as well as its tools for engaging with relevant players in the region.

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