24 June 2017
Visit cib.db.com

Singapore and international banks to construct interbank blockchain network

16 November 2016  |  8773 views  |  0 Singapore Building 1

The Monetary Authority of Singapore (MAS) is partnering R3 and a consortium of financial institutions on a proof-of-concept project to conduct inter-bank payments using blockchain technology.

The Singapore central banks says: "This project could potentially avail a payment system for participants to transact in different global markets round-the-clock that are today limited by time zone differences and office hours."

R3 last week announced plans to to open a blokchain centre of excellence on the island at Lattice80, a huge, brand new fintech centre built by investment house MarvelStone group.

Members of the Singaporean consortium include Bank of America Merrill Lynch, The Bank of Tokyo-Mitsubishi UFJ, Ltd, Credit Suisse, DBS Bank Ltd, The Hongkong And Shanghai Banking Corporation Limited, JP Morgan, OCBC Bank, Singapore Exchange, United Overseas Bank and BCS Information Systems as a technology provider to the project.

Under the pilot, banks will initially deposit cash as collateral with the MAS in exchange for MAS-issued digital currency. A later phase will see the banks use the system to transfer foreign currency, "possibly with the support of another central bank".

MAS believes the technology has the potential to make financial transactions and processes more transparent, resilient and at lower cost. It says the outcomes from the POC will provide guidance on future projects such as cross border payments, automation of securities issuance, and trading and settlement.

Sopnendu Mohanty, chief fintech officer, MAS, says: “The simplification of processes that comes from having a single and coherent, distributed record of information makes blockchain technology an attractive solution for the financial sector. MAS is engaging with the industry and working closely with our partners to explore innovative payment solutions.”

Earlier this week, OCBC Bank carried out a pilot using blockchain technology to transfer funds between its subsidiaries in Singapore and Malaysia.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

OCBC pilots blockchain-based cross-border payments

OCBC pilots blockchain-based cross-border payments

14 November 2016  |  5944 views  |  0 comments | 4 tweets | 10 linkedin
ANZ and DBS open new labs to coincide with Singapore Fintech Festival

ANZ and DBS open new labs to coincide with Singapore Fintech Festival

14 November 2016  |  6748 views  |  0 comments | 6 tweets | 8 linkedin
R3 partners Singapore's MAS for blockchain lab

R3 partners Singapore's MAS for blockchain lab

09 November 2016  |  6998 views  |  0 comments | 5 tweets | 7 linkedin
Standard Chartered and IBM back Byte Academy's Singapore fintech school

Standard Chartered and IBM back Byte Academy's Singapore fintech school

07 November 2016  |  7349 views  |  0 comments | 5 tweets | 6 linkedin
MarvelStone Group to launch 'world's largest' fintech hub in Singapore

MarvelStone Group to launch 'world's largest' fintech hub in Singapore

21 September 2016  |  5325 views  |  0 comments | 7 tweets | 2 linkedin
Singapore proposes new regulatory framework to handle payments innovation

Singapore proposes new regulatory framework to handle payments innovation

25 August 2016  |  8533 views  |  0 comments | 11 tweets | 13 linkedin
IBM to open first 'Centre for Blockchain Innovation' in Singapore

IBM to open first 'Centre for Blockchain Innovation' in Singapore

12 July 2016  |  7949 views  |  0 comments | 20 tweets | 21 linkedin
Singapore sets up fintech office for startups

Singapore sets up fintech office for startups

01 April 2016  |  11996 views  |  1 comments | 13 tweets | 9 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.www.fisglobal.comvisit www.response.ncr.comvisit vasco.com/news/PSD2-compliant-solutions

Top topics

Most viewed Most shared
Live: EBAday 2017, day twoLive: EBAday 2017, day two
9434 views comments | 4 tweets | 5 linkedin
Worldpay pilots app-only mPOS for small retailersWorldpay pilots app-only mPOS for small re...
9094 views comments | 18 tweets | 27 linkedin
Live: EBAday 2017, day oneLive: EBAday 2017, day one
8592 views comments | 3 tweets | 4 linkedin
UK banks will need to change one million sort codes under ring-fencing rulesUK banks will need to change one million s...
8110 views comments | 8 tweets | 25 linkedin
What Banks and their customers can expect for the futureWhat Banks and their customers can expect...
7012 views comments | 7 tweets | 10 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job