Singapore Central Bank Partners With MIT Media Lab To Advance Fintech, Blockchain R&D

The MAS is running its own experiments. Working with Hong Kong's monetary authority, Singapore is developing the Global Trade Connectivity Network, a cross-border platform using blockchain technology to move digital documents and data between countries. The Singapore-Hong Kong corridor comes first. "If all goes well, we expect the GTCN to go live in early 2019," Menon said.

A separate initiative called Project Ubin tackles payments. MAS assembled financial institutions and tech firms to test blockchain for cheaper, faster cross-border settlements. The goal is direct transactions between entities across different jurisdictions without middlemen, at higher speeds and lower costs. The MAS released a project report and source code for prototypes its researchers developed using Corda, Hyperledger Fabric, and Quorum.

Sopnendu Mohanty, MAS's chief fintech officer, said releasing the source code would push other central banks to run similar trials and accelerate development of better domestic inter-bank payments. "This is our contribution to the global financial ecosystem, and a step towards developing cheaper, safer and more efficient cross-border payments," Mohanty said. "We aim to link up such DLT-based systems in the future for improved cross-border connectivity."

Singapore has made blockchain central to its ambition to become a global fintech hub. The city-state is home to about 50 fintech startups focused on blockchain. Major consulting firms and system integrators have established dedicated blockchain units in Singapore. The Fintech Festival, now in its second year, drew more than 25,000 attendees from 100 countries this week.