The Bank for International Settlements (BIS), together with Swift and several European central banks, has successfully tested post-quantum cryptography in real-world payment systems to prepare for the security challenges posed by quantum computing.

The move forms part of an initiative called Project Leap, focused on identifying the main challenges that the financial system will face in a post-quantum world.

Launched in July this year, the project aims to future-proof the financial system against quantum computing risks, moving from proof-of-concept experiments to real-world integration.

This phase of testing, called Project Leap Phase 2, addressed the risk that quantum computers could breach widely used cryptographic algorithms, undermining the security of financial transactions.

The group of financial institutions conducted a series of experiments to replace traditional digital signatures with post-quantum cryptography when sending liquidity transfers in an active European payment system.

It focused on experimenting with and implementing quantum-resistant cryptography in payment systems to ensure that financial infrastructures remain secure against these threats.

“Most payment systems rely on public key cryptography and require long-term data confidentiality, making them vulnerable to the quantum computing threat,” explained BIS in a statement.

The BIS stated that the tests, which covered functionality, performance and interoperability, were successfully completed, demonstrating the feasibility of migrating payment systems to post-quantum cryptography.

The tests also revealed significant differences in performance between traditional and post-quantum algorithms, highlighting the need for further testing and preparation before proceeding with the transition of the financial system, it added.

These new experiments follow Phase 1 of Project Leap, the initial phase of the initiative, which successfully established a secure communication channel between central banks using post-quantum algorithms.

“The two successful technical experiments of Project Leap Phases 1 and 2 have laid important groundwork for the quantum-safe journey of payment systems, underscoring the commitment of central banks and private partners to proactively safeguarding the integrity and resilience of existing and future financial infrastructures,” said BIS.

Startale Group and SBI Holdings have signed a Memorandum of Understanding (MOU) to jointly develop and launch a fully regulated Japanese yen-denominated stablecoin designed to operate as a global settlement currency.

The project brings together Startale's blockchain infrastructure expertise, including its role in co-developing the Soneium blockchain, with SBI Holdings' position as one of Japan's largest financial conglomerates.

According to the firm, they aim to offer a yen-denominated alternative in a stablecoin market now exceeding US$300 billion in circulating supply and processing trillions of dollars in onchain transactions annually, which remains heavily concentrated in US dollar assets.

Shinsei Trust & Banking — a wholly owned subsidiary of SBI Shinsei Bank — will handle issuance and redemption, while SBI VC Trade will facilitate circulation as a licensed Crypto Asset Exchange Service Provider.

Yoshitaka Kitao, representative director, chairman and president of SBI Holdings, says: “The transition to a ‘token economy’ where all real-world assets are tokenised and tokens permeate society as a means of settlement — is now an irreversible societal trend.

“As a company standing at the forefront of the financial industry, the SBI Group has pioneered various initiatives in this domain and has built a digital space ecosystem.

“By jointly issuing a yen-denominated stablecoin with the Startale Group to serve as the foundation of this infrastructure, and by circulating it both domestically and globally, we aim to dramatically accelerate the movement toward providing digital financial services that are fully integrated with traditional finance.”

Japan’s Financial Services Agency (FSA) recently established the Payment Innovation Project, a new regulatory sandbox for blockchain-based payments, and immediately backed the joint-Yen-backed stablecoin pilot by Japan’s three megabanks — Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho — as its first official test case.

The firm says that the Startale-SBI initiative is intended to complement these efforts by providing a trust-bank-issued programmable digital yen, purpose-built for global settlement and institutional adoption, while also serving as a bridge between regulated yen stablecoins and the broader onchain economy, including tokenised assets.

The FSA’s project also builds on Startale’s broader stablecoin strategy, including the recent launch of Startale USD (USDSC), an institutional-grade, USD-pegged stablecoin.

While USDSC lays the foundation for dollar-denominated payments, rewards, and liquidity across consumer and developer experiences, the firm says the new yen stablecoin developed with SBI is intended to provide the regulated yen leg for global settlement, FX, and tokenised asset flows.

Together, the two stablecoins form a complementary currency stack.

Sota Watanabe, CEO of Startale Group, adds: “Startale’s mission is to build the next civilisation by bringing the world onchain. Our yen-denominated stablecoin is not just a means of everyday payment — it will play a central role in a fully onchain world.

“In particular, we see enormous potential in enabling payments between AI agents and powering distributions for tokenised assets, both of which will soon become reality.”

The Depository Trust & Clearing Corporation (DTCC) has picked Digital Asset Holdings' blockchain Canton Network to enable the tokenisation of DTC-custodied assets.

Last week, DTCC unit the DTC (Depository Trust Company) received a no-action letter from the SEC, enabling it to push ahead with a new service to tokenise real-world, DTC-custodied assets.

The Digital Asset partnership will enable a subset of US Treasury securities custodied at DTC to be minted on the privacy-focused blockchain Canton Network. The partners are working towards a minimum viable product in a controlled production environment during the first half of 2026.

Stressing that they anticipate a multi-year operation, the first phase aims to deliver tangible benefits to market participants by providing access to digitised financial instruments in a secure and regulated environment.

Frank La Salla, CEO, DTCC, says: “This collaboration creates a roadmap to bring real-world, high-value tokenisation use cases to market, starting with US Treasury securities and eventually expanding to a broad spectrum of DTC-eligible assets across network providers.”

DTCC will assume a leadership position within the Canton Network’s decentralised governance structure, joining the Canton Foundation as co-chair alongside Euroclear.

Euronext has started working in collaboration with leading financial institutions across Europe, as part of the firm’s effort to accelerate its plans to create a pan-European central securities depository (CSD) model.

Specifically, the firm has begun engaging with issuing agents including Uptevia, ABN AMRO Bank, Rabobank and Banque Internationale à Luxembourg to move ahead with its initiative.

By creating a single unified European CSD, Euronext aims to address post-trade fragmentation across European capital markets, and enhance issuer choice, liquidity and attractiveness of securities, and expand the accessible investor base, shareholder engagement and governance across the region.

Pierre Davoust, head of Euronext Securities, said: “Euronext’s European CSD expansion marks a major milestone in our commitment to building a more unified and efficient European capital market.

“By working together with leading financial institutions, we are unlocking new opportunities for issuers and investors, strengthening Europe’s financial infrastructure and supporting the EU’s vision for a true Savings and Investment Union.”

Euronext is also set to become the CSD of reference for equities and exchange-traded products (ETPs) in French, Italian, Belgian and Dutch markets, effective September 2026.

Richard van Etten, head of corporate broking and issuer services at ABN AMRO Bank, said: “In light of the EU’s Savings and Investment Union plans, we support developments that offer optionality in the issuance and post-trade space, which resolves fragmentation.

“This should ultimately result in a better service and quality for issuers and shareholders, as well as more broadly support the European capital markets.” Plans for a European-wide issuance model also align with the Savings and Investment Union (SIU) initiatives, launched by the European Commission in March 2025, to support the development of European capital markets and boost investment and financing.

In addition, on 5 December, the European Commission unveiled a major package of reforms developed as part of the SIU strategy, with one of the proposals centred on broader passporting for trading venues and CSDs, and the supervision of CSDs shifting to the European Securities and Markets Authority (ESMA).