Project FuSSE aims to modernise financial market infrastructures

Updated January 2026

Financial systems play a critical role in ensuring the smooth and safe transfer of money and assets. As digital payments grow rapidly worldwide, new technologies, the surge in artificial intelligence (AI), and fintech innovations are pushing these systems to handle more transactions, adapt to new demands, and stay secure. At the same time, advances in quantum computing pose risks to the cryptography that protects financial systems, requiring proactive preparation.

Project FuSSE (short for Fully Scalable Settlement Engine, pronounced "fyooz") explores a proof of concept (PoC) for how future payment systems can be designed to be flexible, scalable, and secure to handle these challenges. The project tested a prototype system to see how open-source tools and modular designs could improve financial systems. 

Emerging challenges

Current financial systems face many challenges, including:

• Handling growing transaction volumes: As more people and businesses make digital payments, systems can become overwhelmed.
• Adapting to new technologies and users: Emerging technologies like Internet of Things (IoT) and AI require systems to be more flexible.
• Upgrading outdated systems: Modernising older systems can be expensive and complicated.
• Preparing for quantum computing risks: Future quantum computers could break today's cryptographic protections.

Project FuSSE tested new approaches to address these challenges while also supporting goals like financial inclusion. 

Key focus

The project explored three key qualities that next-generation payment systems need:

1. Flexibility: systems should be modular, meaning they can be updated or adapted easily as needs change.
2. Scalability: systems should be able to handle increasing transaction volumes without becoming too costly or inefficient.
3. Security: systems should be prepared to handle future risks, like quantum computing threats, while maintaining trust and reliability.

The FuSSE prototype used a modular, microservices-based design using cloud-native design patterns including containerisation, stateless processing and event-driven messaging. Instead of building a single, tightly connected system, it broke the system into smaller, independent parts (microservices). These parts could be scaled, updated, or replaced individually without affecting the entire system.

For example, cryptographic services (which secure transactions) were separated into their own module. This allows the system to adopt new cryptographic methods, like post-quantum cryptography (PQC), without needing a complete overhaul. 

Results

The prototype showed promising results:

• High performance: it could handle up to 10,000 transactions per second (TPS) in testing.
• Efficient scaling: as transaction volumes increased, the system required fewer additional resources (approx. 2.5-3.8 times more for a fourfold throughput increase) compared to traditional designs.
• Flexibility: individual parts of the system could be scaled or updated independently.

However, it also revealed challenges:

• Operational complexity: managing a modular system requires more advanced skills and tools (e.g., expertise in cloud computing and distributed systems).
• Security risks: splitting the system into smaller parts creates more potential entry points for cyberattacks, which must be carefully managed.
• The project also showed that cryptographic agility must be complemented by operational agility, including adaptable governance, certification and incident-response frameworks. 

Why this matters

• In 2024, the US National Institute of Standards and Technology (NIST) introduced the first standards for post-quantum cryptography, making quantum readiness an urgent priority.
• Payment systems built today must remain secure for 15–20 years, even as quantum computing advances.
• In emerging markets, digital payment volumes are growing by 15–20% annually.

Systems that cannot scale effectively or adapt to new security needs risk becoming outdated. FuSSE explored how modular designs could address these challenges by:

• Allowing individual components to scale as transaction volumes grow.
• Making it easier to adopt new cryptographic standards.

Who can benefit?

1. Large, established payment systems: FuSSE's approach could help modernise specific parts of their systems, like cryptographic services or message handling, to prepare for future challenges.
2. Smaller or emerging markets: modular designs can help these regions upgrade their systems gradually, supporting financial inclusion and handling growing payment volumes.

FuSSE's findings suggest that modular systems are not a one-size-fits-all solution. The approach should be tailored to the needs and priorities of each region. For example:

• Microservices architectures work best for systems expecting rapid growth or frequent updates.
• Simpler modular designs may be better for smaller systems with stable transaction volumes. 

Partners

Project FuSSE was a collaboration between:

• The Bank for International Settlements Innovation Hub
• Inter-American Development Bank (IADB)
• Central Bank of Chile
• Bank of Canada