Undertaking Mandala is exploring how regulatory necessities may be digitally embedded into cross-border cost techniques to automate compliance.
Led by the BIS Innovation Hub Singapore Centre with the Reserve Financial institution of Australia, Financial institution of Korea, Financial institution Negara Malaysia, and the Financial Authority of Singapore, the venture goals to automate compliance procedures and cut back regulatory friction in worldwide transactions.
It builds on Undertaking Dunbar, which examined a multi-central financial institution digital forex platform for cross-border settlements.
Utilizing a compliance-by-design structure, Mandala encodes jurisdiction-specific guidelines right into a shared digital framework to allow real-time monitoring, pre-validation of checks, and automated proof era earlier than funds are made.
These proofs may be connected to central financial institution digital currencies or Swift messages to make sure all necessities are met earlier than funds are transferred.
The proof-of-concept examined two use circumstances: cross-border lending between Singapore and Malaysia, and capital funding financing between South Korea and Australia.
Each confirmed how automation can velocity up processing, cut back duplicate checks, and defend privateness by way of zero-knowledge proofs and multi-party computation.
Mandala runs on a peer-to-peer community linking banks and regulators.
Every participant operates a node combining a safe messaging layer, a guidelines engine that interprets laws into code, and a proof engine that verifies compliance robotically.
Undertaking Mandala Enters Section 2
Mandala has been efficiently examined with each Undertaking Mariana’s wholesale CBDC community and the Swift transaction supervisor, exhibiting its potential to combine with current and rising cost techniques.
BIS revealed its last Section 1 report in October 2024, confirming that compliance may be embedded inside cross-border transaction protocols.
In November 2025, the venture moved into Section 2 with new individuals, together with the Financial institution of France, Reserve Financial institution of India, Central Financial institution of Kuwait, Bangko Sentral ng Pilipinas, and Financial institution Negara Malaysia.
The following part will check scalability, develop use circumstances, and discover programmable compliance for digital belongings.
If confirmed efficient, Undertaking Mandala might function a typical compliance layer for world cost techniques, supporting G20 and Monetary Stability Board objectives to make cross-border funds quicker, safer, and extra clear.
Featured picture: Edited by Fintech Information Singapore, based mostly on picture by thanyakij-12 through Freepik
