This report provides an update on progress toward the establishment of a regional settlement intermediary to support investment and more integrated bond markets among ASEAN+3 economies.The proposed intermediary is to be based on bilateral links between national central securities depositories and central banks’ real-time gross settlement systems. This model can realize cross-border delivery versus payment settlement to enable safe and efficient cross-border financial transactions. The report also highlights emerging trends and challenges in cross-border financial transactions and sets out next steps in establishing a regional settlement intermediary.