MAS, J.P.Morgan and Temasek Complete Blockchain Multi-Currency Payment Project
The Monetary Authority of Singapore (MAS), J.P. Morgan and Temasek have successfully completed the fifth and final phase of Project Ubin - a blockchain-based multi-currency payments network. The prototype developed under Project Ubin Phase 5 successfully settled payments in different currencies on the same network.
Looking to the future, an international settlement network, modelled on this payments network prototype, could enable faster and cheaper transactions than conventional cross-border payments channels. The commercial applications of the payments network include cross-border payments in multiple currencies, foreign 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.
Project Ubin Phase 5 validated the use of smart contracts on the payments network prototype in Delivery-versus-Payment (DvP) settlement with assets on private exchanges, conditional payments and escrow for trade, as well as payment commitments for trade finance.
This payments network prototype, serves as a test 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.
Mr Sopnendu Mohanty, Chief FinTech Officer, MAS, said, "As with all innovation adoption, there is a time for experimentation, and a time for commercialisation. Project Ubin has worked with the financial industry and blockchain community on a journey of experimentation, prototyping and learning. This has built a strong foundation of knowledge, expertise and experience, and paved a path towards commercial adoption. Following the successful experimentation over five phases, we look forward to greater adoption and live deployment of blockchain technology."
Mr Chia Song Hwee, Deputy Chief Executive Officer, 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... We look forward to supporting commercialisation efforts emanating from Project Ubin and other application areas, with a view to drive greater adoption of blockchain technology."
Mr Umar Farooq, Managing Director & Head of Blockchain, J.P. Morgan, said, "We have been an active contributor to Project Ubin since its inception, leveraging our learnings and infrastructure including Quorum, Interbank Information Network (IIN) and JPM Coin. Phase 5 has demonstrated how broadly blockchain technology can impact the future of business and we look forward to working with MAS, Temasek and other banks to develop and scale commercial solutions for the industry."