Eleven financial institutions and five technology companies working with Singapore's central bank have completed three software prototypes for decentralized payment and settlement on blockchain networ
Eleven financial institutions and five technology companies working with Singapore's central bank have completed three software prototypes for decentralized payment and settlement on blockchain networks. The effort, led by the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS), produced models that implement decentralized netting without exposing transaction details.
The work took place under Project Ubin Phase 2, which explored how blockchain technology could replace traditional clearing and settlement systems. Accenture managed the engineering while R3, IBM, and ConsenSys each contributed their respective blockchain platforms—Corda, Hyperledger Fabric, and Quorum. Microsoft handled deployment on its Azure Blockchain service.
Ong-Ang Ai Boon, director of ABS, said the project marked a shift in how the financial industry approaches infrastructure. "Project Ubin has brought the banks together in experimenting with DLT in a collaborative, open and transparent manner. We see immense benefits from a successful industry collaboration that creates a vibrant ecosystem. We are encouraged that this outcome could potentially be leveraged on by the banks to catalyze the development of more innovative solutions."
David Treat, who leads Accenture's global blockchain practice, said the prototypes represented a major milestone. "Project Ubin has made a great leap forward in proving that value and potential of blockchain systems and their ability to transform industries," Treat said. Divyesh Vithlani, Accenture's managing director for financial services in ASEAN, cited Singapore's growing dominance as a blockchain hub and the government's commitment to maintaining that edge.
Accenture will publish a technical report on the prototypes and their underlying code when Phase 2 concludes. The Singapore Fintech Festival in November will host the release.
Sopnendu Mohanty, MAS's chief fintech officer, said the goal of publishing the findings was to encourage other central banks and financial institutions to experiment. "We look forward to working with other central banks on the use of DLT for cross-border applications," Mohanty said.
Project Ubin began in late 2016 as an effort to understand blockchain's practical applications. MAS identified "digital central bank issued tokens" as a way to build simpler and more efficient payment systems than those in use today.
Singapore's embrace of blockchain sits within its broader Smart Nation plan, which identifies blockchain as a critical technology for the country's financial infrastructure. Ravi Menon, managing director of MAS, told attendees at the Global Blockchain Business Conference this week that building a strong DLT ecosystem was central to that strategy. "The DLT ecosystem in Singapore has been growing handsomely," Menon said.
About 50 blockchain startups currently operate in Singapore, according to MAS figures. Major consulting firms and system integrators have opened dedicated blockchain divisions in the city-state, and local universities are conducting research across different aspects of the technology.
In his keynote address, Menon made the case for blockchain's reach beyond cryptocurrency. The technology has the power to transform many industries, he argued, and the most significant applications extend past Bitcoin and digital coins. "In fact, although cryptocurrencies have attracted the most public attention, it is the broader applications of DLT that hold more promise over the short to medium term," Menon said.
Customer verification represents one such application. Banks could establish shared KYC utilities that identify customers and validate transactions with far less duplication. OCBC Bank, HSBC, and MUFG have begun working on a blockchain platform designed to streamline their KYC processes and reduce friction for customers.
The most transformative use case may be cross-border payments, where blockchain allows different parties to transact with one another without intermediaries, cutting cost and settlement time. DBS Bank and Standard Chartered Bank are testing blockchain to address duplicate invoicing in trade finance while protecting client information. Singapore is also exploring how to connect its National Trade Platform to similar networks in Hong Kong and other locations.
