MAS, JP Morgan Developing a Blockchain Solution for Cross-Border Payments

The Monetary Authority of Singapore (MAS) has partnered with JP Morgan Chase and Temasek to build a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based prototype multi-currency Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term network, the central bank announced on Monday.

This a part of the existing Project Ubin and will be developed as its fifth phase allowing other blockchains to connect and integrate seamlessly. The platform will also offer features including delivery-versus-payment (DvP) settlement with private exchanges, conditional payments, and escrow for trade, as well as payment commitments for trade finance.

Commenting on the development, Sopnendu Mohanty, chief fintech officer at MAS, said: “There is growing evidence now that blockchain-based payments networks are able to enhance cost efficiencies and create new opportunities for businesses...We look forward to linking up with more blockchain networks to improve cross-border connectivity. This will be a big step forward in making cross-border transactions faster, cheaper, and safer.”

Easy connectivity with third-party networks

Per the regulator, the project is currently going through industry testing to determine its ability to integrate with commercial blockchain applications.

Meanwhile, the Wall Street bank is also working on its own proprietary blockchain and will introduce its digital currency for usage within its own banking ecosystem.

“JP Morgan is excited to be an infrastructure partner of MAS and Temasek for Phase 5 of Project Ubin. By leveraging our key learnings from building the Interbank Information Network (IIN) and the JPM Coin, JP Morgan is well-positioned to support the development of a blockchain-based payments network and operate at scale,” John Hunter, Global Head of Clearing and Interbank Information Network (IIN) at JP Morgan, said.

“To better understand the impact and value of blockchain technology, we are pleased to have partnered with MAS and J.P. Morgan for the Ubin platform. The inclusion of non-financial services companies has demonstrated applicability of blockchain technology beyond capital markets and trade finance,” Chia Song Hwee, president and chief operating officer of Temasek, added.