Monetary Authority of Singapore (MAS) announced the launch of the Ubin Project, a multi-currency payment network based on blockchain technology.
A report from the agency states that the project was validated with over 40 financial and non-financial companies to prove its commercial capacity.
Its potential uses include: faster and lower cost cross-border transactions, currency exchanges, smart contracts for deposit and commerce.
The Monetary Authority of Singapore claims that Ubin Project can level the way to build better cross-border payment networks with strategic alliances between central banks and other financial entities.
While Temasek agents claim that the project will allow better adaptation of Blockchain technology in the financial sector.
Ubin Project Phases
It is an initiative born in 2016, developed by Temasek and J.P Morgan, began its testing phase last year.
First and second phase: they were in charge of develop technological competences for a national payment network.
Third and fourth phase: was focused on the internal operability of blockchain-based networks for Delivery-versus-Payment (DvP) and Cross-Border-Payment-versus-Payment (PvP), which were in charge of prove the viability of the project.
Fifth phase: was responsible of proving the value, including how to improve settlement efficiency.
The Ubin project is projected as a bridge that help transactions with central banks and other users in the financial industry, allowing the creation of a better technological infrastructure to expand the network for cross-border payments.