The Bank of England (BoE), Monetary Authority of Singapore (MAS) and Bank of Thailand (BoT) have announced a joint initiative to explore synchronised cross-border foreign-exchange (FX) settlement. 

What the initiative covers

The collaboration will run experiments that use simulated versions of each central bank’s real-time gross settlement (RTGS) systems alongside distributed-ledger-technology (DLT)-based settlement environments. 

They will test interoperability between different settlement platforms, and explore more complex multilateral use-cases involving differing infrastructures, time zones and regulatory frameworks. 

The aim is to enable atomic settlement of FX trades across jurisdictions — meaning both currency-legs settle simultaneously, reducing one-leg-settles-while-the-other-does-not risk. 

Why this matters for fintech and payments firms

For fintechs involved in cross-border FX, payments or tokenised asset flows this initiative is a signal of where underlying infrastructure is headed.

Because settlement risk (when one side of a trade fails after the other has passed) remains a persistent challenge in cross-border FX, synchronised settlement could reduce that risk and shorten settlement cycles.

If RTGS systems and DLT-based rails become interoperable, fintechs may gain access to more efficient settlement mechanisms — or face increased competition as legacy players upgrade.

From a strategy perspective fintechs should view this as part of infrastructure evolution rather than immediate commercial rollout; you’ll need to track how protocols, access models and regulatory frameworks evolve.

Challenges and caveats

Although the collaboration is promising, it remains exploratory. Many real-world barriers persist: legacy infrastructure may resist integration with new settlement models; regulatory regimes across jurisdictions differ; technical interoperability is hard to achieve; and commercial models (pricing, access, governance) are not yet defined.

Additionally tokenised-asset settlement and DLT based rails still have limited maturity and adoption. So while the initiative points to a future frontier, practical impact may take time to filter into mainstream fintech operations.

What to watch next

Keep an eye on the published results of the experiments: how latency, failure modes, interoperability and settlement risk perform across systems. Also monitor whether regulators publish new guidance related to synchronised settlement, tokenised rails or cross-border FX settlement systems.

Watch which market participants begin pilot programmes or partnerships aligned to the new infrastructure, and how fintechs position themselves—whether as enablers, integrators or niche innovators.

Finally observe how access models play out: will new settlement rails favour large banks or open up to smaller firms and fintechs? That will shape competitive dynamics.

Key takeaways for fintech startups

• Synchronised settlement may significantly reduce structural settlement risk in cross-border FX.
  
  
• Interoperability between legacy RTGS systems and tokenised/DLT rails is becoming a key infrastructure trend.
  
  
• Fintechs in cross-border payments or FX should track infrastructure shifts and assess potential strategic moves.
  
  
• Central-bank-led experiments do not equate to immediate commercial availablity; timing and access will matter.
  
  
• Early understanding and positioning around evolving settlement rails or tokenised-asset workflows may yield competitive advantage.

If you’d like to map how your fintech startup can align with this evolving FX-settlement infrastructure, feel free to contact Your Fintech Story.

Nift confirmed its UK expansion through a partnership with Clearpay, the UK arm of Afterpay. The idea is simple. When Clearpay shoppers make on-time repayments, they receive a personalised gift from Nift’s network of brands. The expansion adds a new customer acquisition channel for retailers while giving Clearpay a loyalty mechanic that sits on top of its instalment model.

Why the partnership matters

Clearpay already has strong UK penetration and a recognisable consumer brand. By entering the market through a local BNPL partner, Nift skips the slow part of market entry. It attaches itself to an existing flow of high-intent customers and avoids building distribution from zero.

The deal also aligns incentives. Clearpay improves repayment behaviour and customer retention. Nift gains access to a large audience that is primed for post-purchase engagement. Retailers get a performance-based way to put their products in front of new customers.

Strategic angles for fintech founders

The partnership shows how a non-payments player can integrate into the BNPL experience without changing the payment flow itself. It is a reminder that value can be created around the payment moment, not only in it.

It also highlights the growing push toward loyalty features in consumer fintech. Regulatory pressure on BNPL margins means providers need more reasons for users to stay active. Rewarding positive behaviour with curated offers is one of the cleaner ways to do that without distorting credit incentives.

What to watch next

Nift will need to prove that its gift redemptions generate real commercial lift for retailers. Clearpay will need to track whether rewards influence repayment consistency and repeat usage. The partnership is promising, but both sides still need data to validate the commercial model.

Key takeaways for fintech startups

Here is what founders can learn from this move:

• Market entry is faster when you build on top of an existing consumer flow.
  
  
• Loyalty and rewards can strengthen a core payments product if designed around responsible behaviour.
  
  
• Distribution partnerships reduce the cost of acquiring your first wave of users in a new geography.
  
  
• Any add-on product must prove measurable commercial value for every participant.

If you want support shaping partnerships, go-to-market strategy or product positioning, Your Fintech Story can help you build a model that scales cleanly. Contact us.