The Monetary Authority of Singapore (MAS) and Temasek released a report on fifth and final phase of Project Ubin, “Project Ubin Phase 5: Enabling Broad Ecosystem Opportunities”. The report offers technical observation of the blockchain-based multi-currency payments network prototype and demonstrates how the network could benefit the financial industry and blockchain ecosystem.
The report explores and analyzes the use of blockchain technology in commercial applications across different industries. It also examines how these applications could benefit from integration with the blockchain-based payments network prototype developed.
Sopnendu Mohanty, Chief FinTech Officer, MAS, said:
Sopnendu Mohanty
Source: LinkedInAs 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.
The report found that the multi-currency payments network prototype developed under the final phase of Project Ubin successfully settled payments in different currencies on the same network. An international settlement network, modeled after this prototype could enable faster and cheaper transactions than traditional cross-border payments channels.
The fifth phase of Project Ubin also justified the use of smart contracts on the payments network prototype in use cases of Delivery-versus-Payment (DvP) settlement with assets on private exchanges, conditional payments and escrow for trade, as well as payment commitments for trade finance.
The commercial use of the payments network prototype encompasses cross-border payments in multiple currencies, foreign currency exchange, settlement of foreign currency denominated securities and integration with other blockchain-based platforms to allow end-to-end digitalisation in many industries and use cases.