The Monetary Authority of Singapore (MAS) has partnered with JPMorgan to create a blockchain-based prototype for multi-currency payments.
The information came from an official release from MAS, where Singapore’s central bank states that the most current development on the Project Ubin is that users will be able to make payments in different currencies on the very same network in cross-border payments transactions. This is now the 5th stage of the project, a collaboration between Temasek and JPMorgan.
The new system brings down cost and speeds efficiency, as MAS has stated. The project was started to test blockchain’s viability in the field. Sopnendu Mohanty, who is the chief fintech officer at MAS said the following:
There is growing evidence now that blockchain-based payments networks are able to enhance cost efficiencies and create new opportunities for businesses.
Up until now, the partners on the project have engaged more than 40 partners, both financial and commercial companies, to explore the benefits of the network.
The 5th stage of the project the prototype system allows clearing with variety of currencies and payments settlement. The unique thing about the system is that the network provides an interface for other blockchains to connect and hence support the so called DvP (delivery-versus-payment) settlement with escrow, private exchanges, conditional payments and more.
JP Morgan acted as an infrastructure provider for the development of the system. While Jamie Dimon, the CEO of the investment bank, did not say very nice things about cryptocurrencies, JP Morgan is investing heavily in blockchain technologies. One such initiative is the JPM Coin.