Singapore authorities announced on Monday that they had developed a blockchain-based payments network to enable faster and cheaper international settlements. For the final phase – the commercial roll-out, they tested it with more than 40 companies, which proves its commercial potential.
“The next leap will be in implementing live commercial solutions to solve real-world challenges.”
Launched in 2016, the “Project Ubin” took years to develop. For the final phase of the multi-currency payments network’s prototype, the Monetary Authority of Singapore (MAS) teamed up with JP Morgan and state investor Temasek.
As per the report released today, the prototype was validated through workshops with more than 40 financial and non-financial firms.
The commercial applications of the prototype include foreign currency exchange, cross-border payment in multiple currencies, smart contracts for escrow and trade, and settlement of foreign currency-denominated securities.
The prototype of the Project Ubin can also potentially pave the way to enable more collaboration with not only financial institutions but also central banks to build better cross-border payments networks, the report said. Chia Song Hwee, Deputy Chief Executive Officer of Temasek said,
“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.”
“This validates Temasek’s efforts in exploring and building blockchain solutions focusing on digital identity, digital currencies, and financial asset tokenization. We look forward to supporting commercialization efforts emanating from Project Ubin and other application areas, intending to drive greater adoption of blockchain technology,” he added.
MAS and Temasek also said that they would make some of the technical specifications of the prototype network available to the public to spur industry development.