The Monetary Authority of Singapore (MAS), Temasek Holdings and J.P. Morgan have developed a blockchain-based prototype allowing payments to be made in multiple currencies on the same network.
The prototype is currently undergoing industry testing to determine its ability to integrate with commercial blockchain applications. It has been developed as part of Project Ubin, a collaborative project that aims to explore the use of blockchain and distributed ledger technology (DLT) for clearing and settlement of payments and securities.
“There is growing evidence now that blockchain-based payments networks are able to enhance cost efficiencies and create new opportunities for businesses. We hope this development will encourage other central banks to conduct similar trials, and we will make the technical specifications publicly accessible to accelerate these efforts,” said MAS chief fintech officer Sopnendu Mohanty.
The prototype payments network will provide interfaces for other blockchain networks to connect and integrate seamlessly, MAS said in its statement. Other features to support use cases can be made as a result, such as delivery-versus-payment (DvP) settlement with private exchanges, conditional payments, escrow for trade and payments for trade finance.
Chia Song Hwee, president & chief operating officer of Temasek, said: “Blockchain technology has great potential in transforming businesses and opening up new business opportunities…The inclusion of non-financial services companies has demonstrated applicability of blockchain technology beyond capital markets and trade finance.”
Over 40 financial and non-financial firms have been engaged to explore the benefits of the prototype network.