MAS, Temasek, JPM Complete Final Phase of Project Ubin

The prototype that was built can integrate with other blockchain-based platforms and be used for cheaper, faster and safer cross-border payments and to settle foreign exchange transactions.

MAS (Monetary Authority of Singapore) and Temasek have jointly released a report marking the conclusion of the fifth and final phase of Project Ubin.

The report provides technical insights into the blockchain-based multi-currency payments network prototype that was built and describes how the network could benefit the financial industry and blockchain ecosystem, including in commercial applications across different industries.

According to the report, the prototype was able to successfully settle payments in different currencies on the same network. “[Phase 5] showed the model can be implemented as an international settlement model, which could bring about cheaper, faster and safer cross-border payments,” the report said.

Phase 5 also validated the use of smart contracts on the payments network prototype in use cases such as DvP (Delivery-versus-Payment) settlement with assets on private exchanges, conditional payments and escrow for trade, and payment commitments for trade finance.

The commercial applications of the payments network prototype include cross-border payments in multiple currencies, foreign currency exchange, settlement of foreign currency denominated securities, as well as integration with other blockchain-based platforms to enable end-to-end digitalisation across many industries and use cases.

The prototype, developed in collaboration with JP Morgan and Temasek, can serve as a test network to facilitate collaboration with other central banks and the financial industry for developing next generation cross-border payments infrastructure.

Technical specifications for the functionalities and connectivity interfaces of the prototype network have been made publicly available to spur further industry development.

“Project Ubin has worked with the financial industry and blockchain community on a journey of experimentation, prototyping and learning,” said MAS Chief FinTech Officer Sopnendu Mohanty. “Following the successful experimentation over five phases, we look forward to greater adoption and live deployment of blockchain technology.”

The full report is available here.