The Monetary Authority of Singapore (MAS) has unveiled a plan, dubbed Project Ubin, to connect central banks across the globe using distributed ledger technology.
The project is a collaborative effort of banking consortium R3 and banking majors including Bank of America Merrill Lynch, Credit Suisse, JPMorgan and Mitsubishi UFJ Financial Group.
The aim of the project is to support instant cross-border payment and security settlement, unlike the existing system that facilitates real time settlement of only high-value or institutionally crucial transactions.
Phase one of the project has already been completed in December 2016, with a white paper published soon after that details Project Ubin’s process of tokenising the Singaporean dollar, and how the system for MAS’ high-value transfers known as MEPS+ can be connected to the real-time gross settlement system (RTGS) to boost operational efficiency between various digital wallets.
Work is currently underway on the second phase of the project, which is exploring the ability of distributed ledger technology to enable private and real time transaction settlement.
At a later stage, the project seeks to identify the platform that is ideal for integration with different central securities entities and expand the cryptocurrencies issued by digital banks to other central banks.