MAS eyes using distributed ledger tech in cross-border payments

It will leverage the lessons from its inter-bank payments project.

The Monetary Authority of Singapore has successfully concluded the proof-of-concept project to conduct domestic inter-bank payments using distributed ledger technology (DLT).

First announced in November 2016, the project has achieved the objectives of producing a digital representation of the Singapore dollar for interbank settlement, testing methods of connecting bank systems to a DLT, and making the MAS Electronic Payment System (MEPS+) interoperate with the DLT for automated collateral management.

In a statement, MAS said it has plans for two spin-off projects that will leverage the lessons of the inter-bank payments project. The first project, driven by the Singapore Exchange (SGX), focusses on making the fixed income securities trading and settlement cycle more efficient through DLT. The second project focusses on new methods to conduct cross-border payments using central bank digital currency.

The authority is in the early stages of discussions to develop links from Singapore to other countries using DLT to allow cross-border payments to settle directly using central bank accounts.

MAS FinTech chief Sopnendu Mohanty said the wholesale payments project has demonstrated the commitment of MAS and the industry to co-create concrete use-cases for technologies such as DLT.

"Already, some institutions have embarked on projects that are inspired by this collaboration. We look forward to the next phases of our project which will develop trial applications for securities settlement and cross-border payments," he said.