Featured Product

    MAS Concludes Blockchain Payments Prototype Shows Commercial Potential

    July 13, 2020

    MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype. This phase of Project Ubin highlighted commercial potential, paving a way toward live adoption. The report provides technical insights into the prototype that was built and describes how the network could benefit the financial industry and blockchain ecosystem. The payments network prototype, developed in collaboration with J.P. Morgan and Temasek, can serve as a test network to facilitate collaboration with other central banks and the financial industry for developing next-generation cross-border payments infrastructure. Project Ubin is a collaborative project with the industry to explore the use of Blockchain and Distributed Ledger Technology (DLT) for clearing and settlement of payments and securities.

    The report, which Accenture was commissioned to publish, examines the use of blockchain technology in commercial applications across different industries and how these applications could benefit from integrating with the developed blockchain-based payments network prototype. The benefits were validated through workshops conducted with more than 40 financial and non-financial firms engaged in Phase 5 of Project Ubin. The report describes the key features of the Ubin V network and blockchain blockchain use cases, explaining the benefits of the functionalities provided by the Ubin V network. Through an initial secondary research, the project team identified 124 projects with use cases that were deemed interesting and that would potentially benefit from integration with Ubin V. From this pool, 16 were selected for further exploration. The 16 use cases are broadly categorized into four areas: capital markets, trade and supply chain finance, insurance, and beyond financial services. The final part of the report describes design ideas and concepts for a payments infrastructure of the future, with a retrospective view of how some of these design concepts could be applied to payment architectures. The following are the key findings of the report: 

    • The multi-currency payments network prototype developed under Project Ubin Phase 5 successfully settled payments in different currencies on the same network. An international settlement network, modeled after this payments network prototype, could enable faster and cheaper transactions than conventional cross-border payments channels.
    • Project Ubin Phase 5 validated the use of smart contracts on the payments network prototype in use cases such as Delivery-versus-Payment settlement with assets on private exchanges, conditional payments, and escrow for trade as well as payment commitments for trade finance.
    • The commercial applications of the payments network prototype include cross-border payments in multiple currencies and foreign-currency exchange, settlement of foreign currency denominated securities, and integration with other blockchain-based platforms to enable end-to-end digitalization across many industries and use cases.

    Project Ubin is a multi-year, multi-phase project, with each phase aimed at solving the pressing challenges faced by the financial industry and the blockchain ecosystem. Phase 5 was designed to test this hypothesis and understand the broad opportunities and benefits from integration with the Ubin V network. Phase 5, which was the final experimental phase of Project Ubin, focused on proving value and building a foundation for future live pilots and trials by the industry. In continuing the work done in Phase 4, it successfully developed a blockchain-based multi-currency payments network that enables payments to be conducted in different currencies on the same network. Although it is still a prototype test network, it was developed to be production-ready.


    Keywords: Asia Pacific, Singapore, Banking, Insurance, Fintech, Blockchain, Project Ubin, Phase 5, DLT, Regtech, Payments Prototype, MAS

    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582