Sweden-based Swedish National Bank has completed the first phase of the migration to the TARGET Instant Payment Settlement (TIPS).
Sveriges Riksbank has successfully completed the first phase of the migration to the TARGET Instant Payment Settlement (TIPS). This paves the way for immediate settlement of payments in Swedish kronor in TIPS.
The first phase included establishing a link between the Swedish real-time gross settlement system (RTGS) RIX and the Eurosystem’s TIPS. The connection is a prerequisite for financing and repaying accounts for future Swedish participants in TIPS. In the second phase, the Swedish market will test the TIPS platform to prepare for final migration during the first quarter of 2023.
TIPS currently only regulates payments in euros. But it was designed and developed to enable the settlement of central bank money in several currencies. Sveriges Riksbank is the first central bank outside the euro area to join the TIPS platform with its currency and use this function. The central banks of Norway and Denmark have also expressed interest in joining TIPS with their respective national currencies in order to offer immediate payment settlement in central bank money to their respective communities.
TIPS is a pan-European service for solving electronic payments directly. It is offered by the Eurosystem to banks and payment service providers and operates 24/7/365. The service uses central bank money to facilitate transfers between individuals and companies within seconds, regardless of their local bank’s opening hours.