Project Mariana, a collaborative effort involving the Bank for International Settlements (BIS) and the central banks of France, Singapore, and Switzerland, has successfully completed its mission.
The project focused on testing the cross-border trading and settlement of wholesale central bank digital currencies (wCBDCs) among financial institutions, utilizing decentralized finance (DeFi) technology concepts on a public blockchain.
Project Mariana demonstrated the successful cross-border trading and settlement of hypothetical euro, Singapore dollar, and Swiss franc wCBDCs among simulated financial institutions.
The project relied on several key elements, including a common technical token standard provided by a public blockchain, bridges for seamless wCBDC transfers between different networks, and an Automated Market Maker (AMM) to facilitate automated spot FX transactions and settlements.
The AMM’s Innovative algorithms pooled liquidity from various wCBDCs, enabling automatic pricing and execution of spot FX transactions, and suggesting potential applications for the next generation of financial market infrastructures supporting crossborder trading and settlement.