Project FuSSE aims to modernise financial market infrastructures
Updated 19 April 2024
Project FuSSE (Fully Scalable Settlement Engine, pronounced as fyooz) is a BIS Innovation Hub project that aims to modernize financial market infrastructures for the demands of the digital age. In the face of a rapidly digitizing economy, the traditional systems face myriad challenges. FuSSE offers an open-source solution designed to meet these evolving demands head-on.
Project FuSSE marks the first collaboration between the BIS and the Inter-American Development Bank (IDB), following an agreement signed by the two institutions in September 2023. The presentation of FuSSE's progress and the official start of technical cooperation between both entities took place in Washington, D.C., in an event attended by the BIS general manager, Agustín Carstens, the president of the IDB, Ilan Goldfajn, and the governors of central banks from Chile, Colombia, and Uruguay.
Project Vision
The cost of updating financial market infrastructures is rising, components and systems are evolving at a breakneck pace, and integrating these innovative solutions to ensure straight-through financial services is becoming complex. Project FuSSE aims to mitigate the transition costs and guide the evolution of the next generation of financial infrastructures.
The goal is to produce an open-source building block that is flexible enough to be easily integrated in a wide variety of use cases:
Versatility: Project FuSSE isn't just a one-size-fits-all solution. Its design allows for integration into various usage scenarios, from payment systems to securities settlements.
Scalability: Whether it's the more transactions, an increasing number of participants, or a diverse range of asset types, FuSSE is designed to be a system that can grow.
Efficiency: One of FuSSE's key design goals is to be adaptable to any systems, making it an accessible choice for central banks, irrespective of their existing infrastructure.
Security: Due to the sensitive nature of settlements, the system needs to ensure confidentiality, integrity and availability of services. FuSSE's architecture addresses these concerns, while at the same time ensuring future proofing by adopting a crypto agile approach.
The BIS Innovation Hub has published a first interim report focusing on crucial quantum resistant cryptographic functionalities that allow robust digital signature processes.
Financial inclusion
To advance financial inclusion in Latin America and the Caribbean, countries need to remove barriers to entry for consumers and make personalized products and services more convenient and accessible. FuSSE is committed to facilitating this access through simplifying the implementation of efficient payment systems and other settlement infrastructures necessary for the future of financial transactions.