BIS Project FuSSE explores modular design for scalable settlement engines
The Bank for International Settlements (BIS) has published Project FuSSE, a proof of concept exploring how modular, microservices-based architectures can support flexible, scalable, and secure settlement systems. The project demonstrates efficient processing of high transaction volumes and cryptographic agility.
Microservices for high-volume settlement
Project FuSSE, a proof of concept by the Bank for International Settlements, investigated how modular, microservices-based architectures could support the design of flexible, scalable, and secure settlement systems.
The project demonstrated that microservices enable systems to process high transaction volumes efficiently, achieving 10,000 transactions per second without linear increases in computing power.
This architecture allows individual services, including those handling cryptographic operations, to scale independently, improving performance and resilience.
It also facilitates cryptographic agility, enabling adaptation to emerging post-quantum cryptography (PQC) standards without extensive system redesigns.
The initiative aims to address increasing demands on existing financial market infrastructures due to the global rise of digital payments, IoT, and AI-driven commerce, which introduce complexity, scalability challenges, and new operational and cyber risks.
The research highlights the importance of flexibility, scalability, and security for next-generation FMIs.
Navigating complexity and quantum readiness
The project identified trade-offs, noting that microservices architectures introduce new layers of operational complexity, require careful orchestration, and expand the potential attack surface.
Post-quantum cryptography algorithms also add computational overhead, which can be mitigated through targeted scaling.
Beyond technology, the study emphasized that operational agility – the ability of institutions to adapt governance and incident-response frameworks – is as important as cryptographic agility for maintaining trust and continuity.
"The financial system faces a choice between manageable adjustment costs today and potentially severe disruption tomorrow," the authors conclude.
Project FuSSE provides practical insights for central banks and FMI operators, illustrating architectural feasibility under controlled test conditions, rather than prescribing operational models or policy choices.
It offers approaches for both advanced economies and emerging markets to enhance their settlement systems.
Future-proofing payments, with caveats
Project FuSSE successfully demonstrates a viable path for future-proofing financial market infrastructures against evolving technological and cyber threats.
However, the acknowledged trade-offs in complexity and attack surface highlight that implementation requires significant operational maturity and careful risk management.
While not a production-ready solution, the insights are crucial for system designers grappling with the next generation of payment system challenges.