Russia’s Ministry of Finance is moving ahead with plans to establish BRICS Clear, a custody and settlement framework for the BRICS bloc. Finance Minister Anton Siluanov described the project in a recent interview with RT Arabic, saying BRICS members are weighing the creation of an alternative fiscal and payment settlement system. The goal is to lessen dependence on Western financial rails and to build a parallel infrastructure that can support cross-border trade and investment among member states. The initiative fits into a broader effort to align financial market infrastructure and regulatory standards across BRICS, inviting collaboration among central banks, securities regulators, and the region’s market participants.
Siluanov described BRICS Clear as an escrow system built on distributed ledger technology that would safeguard the custody of securities and ensure final settlement across borders. He noted that BRICS already has a securities accounting system modeled after Western counterparts, but its use remains limited for Russia and several other states, underscoring the need for a BRICS-wide solution. The envisioned framework would pair secure custody with transparent, auditable settlement flows, reduce counterparty risk, and speed up processing times for cross-border deals across member markets. It would also aim to harmonize reporting standards and interoperability with widely adopted formats such as ISO 20022 to ease data exchange and oversight.
During a session at the MIT Center for International Studies on October 9, analysts observed that BRICS economic integration could gain momentum in 2024 as members build their own payment rails and launch a grain exchange. The discussion highlighted how a BRICS-wide payment network could simplify settlements for commodities, particularly grain, energy, and industrial inputs, while expanding access to settlement services for emerging economies. Observers emphasized that such tools would increase resilience by offering alternatives to traditional networks, lower transaction costs, and shorten the time needed to move money and titles between participants. The MIT remarks reflect a broader confidence in the ability of BRICS to create credible, domestic options that align with the bloc’s growth objectives.
Earlier reports indicated Cuba sought partner status within BRICS, signaling Latin America’s interest in participating in the bloc’s financial architecture. Cuba’s outreach illustrates BRICS’s appeal to a wider group of economies seeking to diversify trade, investment, and financial partnerships beyond existing Western-led frameworks. If Cuba were to join the BRICS fold, it could influence regional trade dynamics and potentially benefit from access to BRICS mechanisms for funding, risk sharing, and market access.
Taken together, the discussions around BRICS Clear and related initiatives reveal a clear trend: major emerging economies are pursuing independent financial rails to support multipolar finance. While timelines remain fluid and subject to regulatory, political, and technical hurdles, the direction points to a broader effort to build resilient settlement ecosystems that operate alongside established networks. For policymakers, investors, and traders in North America, this signals potential shifts in cross-border flows and new avenues for engagement as BRICS members explore alternative paths for settlement, custody, and cooperation.