The Monetary Authority of Singapore (MAS) announced this Monday, alongside Temasek, in a joint report that it has developed a payments network based on blockchain for international settlements.
In particular, the report marks the successful conclusion of the fifth and final phase of Project Ubin. The report provides insight into the blockchain-based multi-currency payments network prototype and outlines how the network could benefit the financial industry and blockchain ecosystem.
In particular, the network prototype during Phase 5 of Project Ubin successfully settled payments in different currencies on the same network. As pointed out by the regulator, an international settlement network modelled on this prototype could enable faster and cheaper transactions than conventional cross-border payments channels.
During the final stage of Project Ubin, the use of smart contracts on the payments network prototype was validated, in use cases such as Delivery-versus-Payment (DvP) settlement with assets on private exchanges, among other instances
According to the statement from MAS and Temasek, the commercial applications of the network prototype include cross-border payments in multiple currencies, foreign currency exchange, settlement of foreign currency-denominated securities.