The Singapore Monetary Authority (MAS) has officially announced the launch of a blockchain-based payment system developed in collaboration with JP Morgan and Temasek.
The development of the prototype was conducted by MAS itself and allows payments to be made in different currencies on the same network.
The goal is to improve efficiency and reduce costs for those who will use it, particularly for companies operating in the commercial sector.
The prototype is currently being tested for integration with blockchain-based commercial applications and will be presented at the Singapore FinTech Festival and Singapore Week of Innovation and TeCHnology (SFF x SWITCH) 2019.
This payment system is part of Project Ubin, of which it is the fifth and final phase, and will serve to provide interfaces to other blockchain networks so that they can connect and interact seamlessly, in addition to the Delivery versus Payment (DvP).
Project Ubin is a MAS collaboration project with companies to explore the use of DLT technologies and to better understand the benefits they can bring through practical experimentation and the study of simpler alternatives than today’s systems based on digital tokens issued by the central bank.
The general manager of the Clearing and Interbank Information Network (IIN) of JP Morgan, John Hunter, said:
“J.P. Morgan is excited to be an infrastructure partner of MAS and Temasek for Phase 5 of Project Ubin. By leveraging our key learnings from building the Interbank Information Network® (IIN) and the JPM Coin, J.P. Morgan is well-positioned to support the development of a blockchain-based payments network and operate at scale”.
Temasek’s President and Chief Operating Officer, Chia Song Hwee, added:
“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 have partnered with MAS and J.P. Morgan for the Ubin platform. The inclusion of non-financial services companies has demonstrated applicability of blockchain technology beyond capital markets and trade finance. We look forward to deeper collaboration and support for Singapore’s pioneering efforts in the blockchain space”.