The Monetary Authority of Singapore (MAS), in collaboration with the industry has been making rapid progress in the the use of Distributed Ledger Technology (DLT) for cleaning, and settlement of payments, and securities as part of ‘Project UBIN’. UBIN is more comprehensive compared to similar projects like Jasper, and LionRock
MAS, and Association of Banks in Singapore (ABS) created a consortium in their leadership, developed SW for three different models fo decentralised inter-bank payment, and settlements with liquidity savings mechanisms, and open-sourced it. As expected this ignited research, and innovation.
One of the more interesting developments has been the innovation around settlement of tokenised assets (digital currencies, and securities) across different blockchain platforms. The project established that irrefutable ‘Delivery Versus Payment (DVP)’ settlement, and invest protection can be achieved. ‘Interledger Interoperability’ was successfully demonstrated too. The DVP settlement processes have been automated using ‘Smart Contracts’.
UBIN has received contributions from a large number of banks, financial institutions, stock exchanges, and other researchers, and has reached a level of maturity, and acceptance that makes its worthy of a serious look. There is a lot of learning; the important ones being:
– Motivations & priorities of different stakeholders
– Risk reducing transactions
– Expectations from the DLT Platform