MAS and J.P. Morgan testing Ubin Blockchain for payment
"Ubin" is a joint venture between banks and industry dedicated to the application of Distributed Ledger Technology (DLT) for the settlement of transactions and securities. The Ubin network is a decentralized interbank payment system that enables delivery-versus-payment (DvP) functionality to bill for tokenized assets across different blockchain platforms. The network should also ensure the automation of DvP settlement processes with smart contracts.
According to the press release, Ubin provides interfaces for other blockchain-based networks that seamlessly integrate their systems into payments. In addition, the network offers additional functions such as delivery-versus-payment settlement with private exchanges.
Sopnendu Mohanty, Chief FinTech Officer MAS, said:
There is growing evidence that blockchain-based payment networks are able to increase cost efficiency and create new business opportunities. We hope that this development will encourage other central banks to carry out similar experiments and we will make the technical specifications publicly available in order to speed up these efforts. We look forward to networking with other blockchain networks to improve cross-border connectivity. This will be a big step forward to make cross-border transactions faster, cheaper and safer.
The prototype marks the beginning of the final phase of the Ubin project, which is putting the economic viability of the network to the test. More than 40 companies participated in this project to document the potential benefits and potential weaknesses. The corresponding successfully tested applications will be presented at the Singapore FinTech Festival and the Singapore Week of Innovation and TeCHnology 2019.
Central banks networked via Ubin
The blockchain-based network Ubin, developed in collaboration with MAS with J.P. Morgan and Temasek was interesting for companies and large customers who could reduce their corporate costs for transnational transfers.
Chia Song Hwee, President & Chief Operating Officer at Temasek, said:
Blockchain technology has great potential in transforming businesses and opening up new business opportunities. To better understand the impact and value of blockchain technology, we are pleased to partner with MAS and J.P. Morgan entered into a partnership for the Ubin platform. The inclusion of non-financial service providers has shown that blockchain technology is applicable beyond capital markets and trade finance.
The central banks of Canada (BoC), England (BoE) and Singapore (MAS) have cooperated in the project. The three banks have accordingly published a report assessing alternative models that could improve cross-border payments. MAS and BoC have linked their respective national payment networks through Project Ubin and Project Jasper and have already successfully tested cross-border and cross-currency payments with central bank digital currencies.
A detailed report on the Ubin project is expected to be released in early 2020 by tech service provider Accenture.
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