MAS develops blockchain-based integration for multi-currency payments

The prototype is being tested for commercial blockchain applications.

The Monetary Authority of Singapore (MAS), in collaboration with J.P. Morgan and Temasek, has successfully developed a blockchain-based prototype that enables payments to be carried out in different currencies on the same network, the regulatory body announced.

The network is currently undergoing industry testing to determine its ability to integrate with commercial blockchain applications.

The network will reportedly provide interfaces for other blockchain networks to connect and integrate seamlessly. It will also offer additional features to support use cases such as Delivery-versus-Payment (DvP) settlement with private exchanges, conditional payments and escrow for trade, as well as payment commitments for trade finance, added MAS.

The development marks the latest milestone for Project Ubin, which saw the agency “explore the use of Distributed Ledger Technology (DLT) for the clearance and settlement of payments and securities.”

Sopnendu Mohanty, Chief FinTech Officer, MAS, said, “There is growing evidence now that blockchain-based payments networks are able to enhance cost efficiencies and create new opportunities for businesses. We hope this development will encourage other central banks to conduct similar trials, and we will make the technical specifications publicly accessible to accelerate these efforts. We look forward to linking up with more blockchain networks to improve cross-border connectivity,” commented Sopnendu Mohanty, chief fintech officer of MAS.