Michael Boel, Co-Head of Clearing Technology at Banking Circle, shares why the TIPS infrastructure pilot is relevant for cross-border payments.
Domestic instant payments work, as seen time and time again. Schemes like SEPA Instant, Faster Payment Systems (FPS), the New Payments Platform (NPP), and RIX-INST have proven that real-time settlement at national scale is viable, reliable, and increasingly expected by businesses and consumers alike.
The problem has always been cross-border payments. Multiple intermediaries, fragmented liquidity, settlement risk that sits open for hours or days, and currency conversion that is often treated as an afterthought instead of being built into the transaction from the get-go – all add friction.
For fintechs and payment platforms operating across multiple markets, these challenges quickly add up. However, this is changing with the ECB’s TIPS, and has significant implications for payments infrastructure.
What is the TIPS cross-currency pilot and why does it matter?
ECB’s TIPS infrastructure recent pilot for instant cross-currency settlement tested atomic EUR-DKK transactions, with both currency legs completing simultaneously and immediately.
An important turning point for European instant, cross-border payments, the TIPS pilot demonstrates that instant cross-border settlement in central bank money is no longer theoretical. More importantly, it shows that once infrastructure can support atomic cross-currency settlement, the step to instant cross-border in a single currency is significantly simpler.
TIPS’ pilot relevance extends beyond the test, signalling an evolution of instant cross-border payments: from proof of concept to deployable market infrastructure. At the same time, an important question arises and needs an industry response: what should payments infrastructure look like to scale this?
Why cross-border payments are still slow and expensive
Most cross-border payments still travel through decades-old legacy correspondent banking networks, and each intermediary adds cost, time, and complexity.
While five years ago, most fintech conversations focused on customer experience and speed to market, today, the discussion centres on the infrastructure layer, with operational complexity growing rapidly as firms scale internationally.
Payment platforms for global merchants, gig economy payouts, marketplace settlements, and cross-border B2B flows – all have the same need: fewer payment origination and settlement intermediaries, and more control over what happens in between.
How direct clearing access improves cross-border settlement
The TIPS cross-currency pilot reinforced a principle gaining momentum across the industry: the closer institutions are to settlement infrastructure, the more they can control.
Direct participation in domestic clearing schemes such as SEPA Instant, Swiss Interbank Clearing Instant Payments (SIC IP), FPS, DKK TIPS, RIX Instant, and NPP removes intermediary dependencies. It provides faster settlement, greater liquidity visibility, and stronger operational resilience.
With the move toward more real-time, data-rich, and operationally resilient payment models, control of the infrastructure layer is now increasingly strategic for financial institutions. Speed is not the only important aspect; we’ve already established that architecture matters too. Institutions operating closer to the clearing layer can manage liquidity in real time, reconcile faster, and build treasury operations that scale more efficiently.
What does instant cross-currency settlement require?
Settling a EUR-DKK payment atomically, with both legs completing and finalising simultaneously, requires coordination between central banks, clearing systems, and FX infrastructure (historically siloed).
The TIPS pilot has demonstrated this on live rails. However, cross-currency settlement through TIPS remains limited to specific corridors and scheme hours. Delivering instant cross-currency settlement across multiple markets and currencies, around the clock, demands infrastructure that goes beyond the current capabilities.
How regulated stablecoins are extending instant payment infrastructure
The next development phase extends past traditional clearing schemes. Regulated stablecoins, including USDC, Eurite (EURI), and Global Dollar (USDG), are creating parallel near-instant settlement rails that operate outside scheme hours and across currencies. For institutions using fiat instant payment rails, these capabilities offer another route to extend settlement availability beyond traditional operating windows.
SEPA Instant or TIPS are not replaced. This is more of an added benefit. A payment settling via SEPA Instant during European business hours can settle via a regulated stablecoin rail at 2 am on a Sunday with the same platform, compliance standards, and counterparty.
The G20 Roadmap, ISO 20022, and the path to global instant payments
The G20 Roadmap’s ambition is faster, cheaper, more transparent, and accessible cross-border payments. ISO 20022 created a common data language, domestic instant schemes proved real-time settlement, and now the TIPS cross-currency pilot demonstrated functionality across currencies.
The next challenge is implementation, and each step builds on the last, raising expectations for infrastructure capabilities.
What comes next for cross-border payment infrastructure
The shift from instant domestic to instant cross-border payments is redesigning how money moves globally. Institutions investing in cross-border infrastructure – including direct clearing access, embedded FX, real-time settlement, and digital asset interoperability – are actively helping build the future of the payments ecosystem.
For fintechs, payment platforms, and financial institutions operating at scale, the infrastructure layer is becoming a competitive differentiator.
About the author
Michael Boel is Head of Clearing Technology at Banking Circle and a senior voice on global payment infrastructure. He works with central banks, clearing schemes, and market infrastructures, shaping how banks access and operate within payment systems globally. He leads Clearing and Product Execution, helping clients enable direct market access and deliver instant payment capabilities at scale. With over 15 years’ experience in financial services, including roles at Saxo Bank, Michael brings a combination of technical depth and commercial perspective across the transaction banking value chain, and is recognised for his expertise in payment system access, correspondent banking models, and the regulations shaping global liquidity.
About Banking Circle
Banking Circle is a modern correspondent bank committed to building a local clearing network for all major currencies to deliver fast, low-cost payments, with no hidden fees for the beneficiary. It provides a suite of unique and award-winning banking solutions, including multi-currency banking accounts and Virtual IBANs, bank connections for local clearing, and cross-border payments, all underpinned by market-leading compliance and security.
