TD completes tokenised payment test in Project Agorá

TD has completed a tokenised payment test under Project Agorá, moving real US dollar funds between two TD entities in the United States.

The transaction involved TD New York Branch, through TD Securities, and TD Bank, with Bank of New York serving as clearing bank and intermediary.

The test formed part of Project Agorá's real-value trials. The public-private initiative, convened by the Bank for International Settlements and the Institute of International Finance, is examining whether digital forms of central bank reserves and commercial bank deposits can improve wholesale cross-border payments.

TD said the payment demonstrated its ability to issue tokenised money on the Agorá platform and transfer funds instantly between the two entities with atomic settlement. Under that structure, linked parts of a payment settle together or not at all, helping reduce settlement risk.

The broader programme brought together 28 central banks and financial institutions across Asia, Europe and North America. Participants completed transactions in selected currencies totalling about CHF 800,000, with individual payments ranging from CHF 9,000 to CHF 125,000, or local currency equivalents, across 17 scenarios.

Wholesale cross-border payments remain a focus for banks and policymakers because they often involve multiple intermediaries, limited visibility and delays. Project Agorá is testing whether a shared digital platform can simplify those processes while keeping central banks in control of their own currencies and operations.

The prototype records tokenised versions of commercial bank deposits and central bank reserves on shared infrastructure. It also explores automated payment instructions, common data standards and tools designed to reduce manual reconciliation.

Industry test

The TD-BNY transaction adds a US banking example to a broader set of experiments on how tokenisation could work in real operating conditions. The project has also examined operational, technical, governance and legal questions, including privacy tools and when payments are considered final across jurisdictions.

That legal and governance work matters because payment finality and regulatory oversight are central to any system used for wholesale bank transactions. The project is designed to test new technology without replacing existing forms of money, instead using digital representations of established bank liabilities and reserves.

For TD, the result fits a broader push by large financial institutions to assess whether distributed ledger systems can support mainstream financial market activity. Banks have spent several years testing tokenised deposits, digital cash instruments and programmable settlement in areas ranging from securities settlement to treasury operations.

One attraction for the sector is the prospect of combining payment and compliance steps on one platform. In theory, that could provide clearer end-to-end visibility and reduce the need for separate messaging, reconciliation and manual intervention.

Still, many projects remain at the testing stage as financial institutions, central banks and regulators assess interoperability, legal treatment and operational resilience. Many participants view real-value testing as more meaningful than simulations because it exposes systems to actual fund movements and the controls that come with them.

Jo Jagadish, Head of Digital & Payments and Consumer Deposits, TD Bank U.S., described the work as part of a broader effort to improve global payments.

"Project Agorá reflects the kind of responsible innovation that has the potential to meaningfully improve how money moves across borders," Jagadish said. "We were pleased to join with peer banks, central banks and the BIS Innovation Hub during Real Value Testing on the Project Agorá platform. This was a great example of what's possible when the public and private sectors come together with a shared ambition to make global money movement faster, safer and more efficient."

BNY acted as clearing bank and intermediary between the two TD entities. Its involvement underscores the importance of established market infrastructure providers in any transition from conventional payment rails to tokenised forms of settlement.

Carolyn Weinberg, Chief Product & Innovation Officer, BNY, said the trial showed the practical relevance of tokenised deposits for cross-border transactions.

"Project Agorá highlights the potential of tokenized deposits making cross-border payments more efficient, transparent and resilient," Weinberg said. "As a trusted provider of financial infrastructure, BNY is pleased to collaborate with industry and public sector partners to explore the next generation of modern market capabilities."