MAS, JPMorgan Build Payments System With Inter-Blockchain Connectivity

Working with JPMorgan and Temasek, Singapore's central bank has developed a prototype blockchain-based cross border payments system.

Nov 11, 2019 at 9:40 a.m. UTC
Updated Sep 13, 2021 at 11:41 a.m. UTC

The Monetary Authority of Singapore (MAS), the city-state's central bank, has completed development of a blockchain-based cross border payments system that can support a range of currencies.

Carried out as part of the ongoing Project Ubin initiative, the prototype platform was developed in partnership with investment banking multinational JPMorgan and Singapore government-owned investment firm Temasek. It's now being tested to see if it lives up to its promise as a means to cut costs for businesses and to gauge its ability to connect with different commercial blockchain applications, MAS said on Monday.

The project has been some time in the works, with the second phase of the project announced back in 2017. Earlier tests had involved MAS and a group of major banks, with blockchain startup-consortium R3 and professional services firm Deloitte also involved. Originally focused on digitization of the Singapore dollar using blockchain, the project moved on to look at the tech's potential to support a real-time gross settlement system like those used by central banks.

With Ubin now in its fifth phase, MAS said the payments prototype "will provide interfaces for other blockchain networks to connect and integrate seamlessly." It's also been built to offer additional benefits such as delivery-versus-payment (DvP) settlement with private exchanges, conditional payments and escrow and payment commitments for trade finance.

“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 Sopnendu Mohanty, chief finTech officer at MAS. "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.”

With the code now developed, over 40 companies from within finance and elsewhere have been working to ascertain the commercial viability and overall value of the platform.

JPMorgan indicated that work on its own blockchain initiative for internal business payments – which utilizes a dollar-pegged stablecoin – has informed work on the Ubin project.

John Hunter, global head of clearing and Interbank Information Network at JPMorgan, said:

“By leveraging our key learnings from building the Interbank Information Network and the JPM Coin, J.P. Morgan is well-positioned to support the development of a blockchain-based payments network and operate at scale.”

Planned for early next year, professional services giant Accenture will publish a report on the project, listing the potential use cases for a blockchain payments platform and setting out additional features that could be built into the system. The technical specs for the platform's connectivity interfaces will be made freely available under the Apache License Version 2.0.

Singapore image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Argo Blockchain Q1 Net Income Plunges 90% to $2.1M

Bitcoin was priced in the $40,000 range for much of Q1 compared with nearly $60,000 in the same period a year earlier.

Bitcoin was priced in the $40,000 range for much of Q1 compared with nearly $60,000 in the same period a year earlier.

2
Nearly 5,505 Ether, or $10M of the $625M Ronin Exploit, Are on the Move

Over 5,505 ether connected to the Ronin exploiter address seem to be on the move via privacy exchange Tornado Cash, blockchain data shows.

Over 5,505 ether connected to the Ronin exploiter address seem to be on the move via privacy exchange Tornado Cash, blockchain data shows.

3
First Mover Asia: USDC Hasn’t ‘Flippened’ USDT, but Trader Preferences Are Changing; Cryptos Rise Despite Bearishness

A Glassnode analyst suggests the collapse of the UST token has triggered a change in investors' stablecoin preferences; bitcoin holds above $30,000.

A Glassnode analyst suggests the collapse of the UST token has triggered a change in investors' stablecoin preferences; bitcoin holds above $30,000.

4
Musk Sets New Condition for Twitter, Citi Says Terra’s Fallout Unlikely to Hit Wider Financial System

The most valuable crypto stories for Tuesday, May 17, 2022.

The most valuable crypto stories for Tuesday, May 17, 2022.