The Monetary Authority of Singapore (MAS) declared this Monday, alongside Temasek, in a joint report that it has created a payments network based on blockchain for international settlements. In particular, the report notes the prosperous completion of the fifth and final phase of Project Ubin. The report offers insight into the blockchain-based multi-currency payments network prototype and outlines how it could profit the financial industry and blockchain ecosystem.

Specifically, the network prototype, which has been developed in association with JP Morgan and Temasek, could allow faster and cheaper international settlements. To encourage further industry development, technical specifications for the functionalities and connectivity interfaces of the prototype network have been publicly available, the MAS stated.

Project Ubin Phase 5

In particular, the network prototype during Phase 5 of Project Ubin successfully settled payments in various currencies on the same network. As pointed out by the regulator, an international settlement network modeled on this prototype could allow faster and cheaper transactions than traditional cross-border payments channels. During the final stage of Project Ubin, the application of smart contracts on the payments network prototype was validated utilizing cases like Delivery-versus-Payment (DvP) settlement with assets on private exchanges other instances.

Mr. Sopnendu Mohanty, Chief FinTech Officer, MAS, stated in the statement: “As with all innovation adoption, there is a time for experimentation and a time for commercialization. 

“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.”

MAS looks forward to furthering the adoption of blockchain

According to the statement from MAS and Temasek, the commercial applications of the network prototype involve cross-border payments in various currencies, foreign currency exchange, settlement of foreign currency-denominated securities.The regulator also stated that the network could be combined with other blockchain-based platforms to allow end-to-end digitalization over many industries and use cases.

“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,” added Mr. Chia Song Hwee, Deputy Chief Executive Officer, Temasek in a statement.

“This validates Temasek’s efforts in exploring and building blockchain solutions focusing on digital identity, digital currencies, and financial asset tokenization. We look forward to supporting commercialization efforts emanating from Project Ubin and other application areas, intending to drive greater adoption of blockchain technology.”