Project Ubin 2.0

On Thursday (5th Oct 2017), MAS (Monetary Authority Of Singapore) and ABS (Association Of Banks in Singapore) has jointly announced the initial outcome of the Phase 2 of Project Ubin (the initiative to tokenize Singapore Dollars. For more details, you can check out my earlier post here). 

The key objective in this project is to make use of the Blockchain Technology i.e. the Distributed Ledger Technology (DLT) to increase speed and privacy in cross-border clearing and settlement of payments and securities. Take for example, currently in Stock investment, a transaction is usually taking T+3 (Transaction Date + 3 working days) to be deemed completed. With Blockchain Technology, there is a potential to cut-down such lag time to within minutes or even seconds. How cool is that? 

Not much details has been shared by MAS/ABS yet but what we know so far is:

In the Phase 2 of Project Ubin, there are 3 prototypes being developed to implement decentralised netting (aggregating and offsetting the value of multiple positions or payments due to be exchanged between two or more parties) of payments in a manner that preserves transactional privacy. 

What's next?

A report on the Phase 2 findings and details of the prototypes developed will be published during the Singapore FinTech Festival, which will be held from 13 to 17 Nov 2017.

So, stay tuned and more details will be shared soon.

Cheers!