Instant cross-currency payments (TIPS X-CCY)

On 21 June 2021, the Executive Board decided to assist the ECB in developing proposals to operationalise a cross-currency settlement service on TIPS. Since then, the Riksbank has worked together with the ECB, Banca d'Italia and Danmarks Nationalbank to make such a service possible. On 21 October 2024, the ECB’s Governing Council decided that the TIPS X-CCY cross-currency service will be implemented in TIPS in October 2025. This will make it possible to link the euro, Swedish krona and Danish krone. In 2028, Norges Bank is planning to join TIPS, opening up the possibility that TIPS X-CCY may also support payments in Norwegian kroner in the future. At the same time, the ECB is exploring the possibility of enabling payments between currencies outside Europe by interlinking TIPS with other similar international instant payment systems.

TIPS X-CCY offers an infrastructure for cross-currency instant payments that is harmonised with European messaging standards. The Riksbank sees the service as a contribution to the work towards a more inclusive, standardised and international payment system.

About the TIPS X-CCY service

The Riksbank currently provides a settlement service for instant payments, RIX-INST, to banks and other payment service providers. RIX-INST, which is a part of the Riksbank’s settlement system RIX, uses the Eurosystem’s TIPS platform. TIPS X-CCY is a further development of the TIPS platform, which enables the settlement of instant cross-currency payments. Settlement will take place in each currency and in each currency’s settlement system on the TIPS platform, but the systems will be linked via a new function that controls and ensures that both payments in each currency can be settled together. The settlement model for TIPS X-CCY is called the Enhanced Linked Transaction model (ELKT model) and, in short, means that two different currencies that are currently settled in separate parts of the TIPS platform can be settled against each other.

For detailed information on the settlement model, see this video run-through (link to ECB) and presentation material (link to ECB).

New joint task force for implementation, discussion and further development of TIPS X-CCY

During the first quarter of 2025, RIX-INST participants had the opportunity to express their interest in participating in collaboration on the development of the service by signing a Letter of Intent (link). The deadline for replies was 28 February 2025. A number of Swedish PSPs expressed interest.

A working group called Cross-Currency Business Development Task Force has been set up. The task force consists of the market participants that have expressed their interest in the cross-currency service, as well as representatives from Sveriges Riksbank, Danmarks Nationalbank and the Eurosystem. The aim of the task force is to contribute to the work of implementing the cross-currency service and potential future developments of this service.

Documentation of the task force meetings is published on the ECB’s website (link to ECB).

Next steps for TIPS X-CCY

TIPS X-CCY is planned for launch in October 2025, at which point it will become a technically available service for the Riksbank via the TIPS platform. Interested participants will be invited for technical tests of the service from July 2025.

To support the X-CCY service, the RIX Terms & Conditions need to be updated. The Riksbank aim for the updated Terms & Conditions to enter into force by end of June 2026, which means that the proposed amendments is planned to be sent for referral to the RIX Participants during spring 2026.

It is important for the Riksbank to support the use of common market standards for the cross-currency service and we therefore plan to require the adherence to the coming NPC OLO scheme for the participation in TIPS X-CCY for the Swedish krona. Since the NPC OLO scheme will not enter into force until after June 2026, there will be a period where bi/multi-lateral agreements need to be in place between the participants who go live with the cross currency service for SEK before the NPC OLO scheme has entered into force and RIX-INST have implemented the necessary changes (if any).

For questions about the cross-currency service, please email RIX-INST.TIPS-CCY@riksbank.se