The Monetary Authority of Singapore (MAS) announced this Monday, alongside Temasek, in a joint report that it has developed a payments network based on blockchain for international settlements.
In particular, the report marks the successful conclusion of the fifth and final phase of Project Ubin. The report provides insight into the blockchain-based multi-currency payments network prototype and outlines how the network could benefit the financial industry and blockchain ecosystem.
Namely, the network prototype, which has been developed in collaboration with JP Morgan and Temasek, could enable faster and cheaper international settlements. In order to spur further industry development, technical specifications for the functionalities and connectivity interfaces of the prototype network have been made publicly available, the MAS said.
Project Ubin Phase 5
In particular, the network prototype during Phase 5 of Project Ubin successfully settled payments in different currencies on the same network. As pointed out by the regulator, an international settlement network modelled on this prototype could enable faster and cheaper transactions than conventional cross-border payments channels.
During the final stage of Project Ubin, the use of smart contracts on the payments network prototype was validated, in use cases such as Delivery-versus-Payment (DvP) settlement with assets on private exchanges, among other instances.
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Commenting on the project, Mr Sopnendu Mohanty, Chief FinTech Officer, MAS, said in the statement: “As with all innovation adoption, there is a time for experimentation, and a time for commercialisation.
“Project Ubin has worked with the financial industry and blockchain community on a journey of experimentation, prototyping and learning. This has built a strong foundation of knowledge, expertise and experience, and paved a path towards commercial adoption. Following the successful experimentation over five phases, we look forward to greater adoption and live deployment of blockchain technology.”
MAS looks forward to further adoption of blockchain
According to the statement from MAS and Temasek, the commercial applications of the network prototype include cross-border payments in multiple currencies, foreign currency exchange, settlement of foreign currency-denominated securities.
The regulator also said that the network could be integrated with other blockchain-based platforms to enable end-to-end digitalisation across many industries and use cases.
“Blockchain technology has great potential in transforming businesses and opening up new business opportunities. Phase 5 of Project Ubin has demonstrated the commercial applicability, viability and benefits of blockchain technology across industries, beyond capital markets and trade finance,” added Mr Chia Song Hwee, Deputy Chief Executive Officer, Temasek.
“This validates Temasek’s efforts in exploring and building blockchain solutions focusing on digital identity, digital currencies and financial asset tokenisation. We look forward to supporting commercialisation efforts emanating from Project Ubin and other application areas, with a view to drive greater adoption of blockchain technology.”