The Monetary Authority of Singapore (MAS) has partnered with JP Morgan Chase and Temasek to build a blockchain-based prototype multi-currency payments 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.”
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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.