Ethereum is gaining a lot of traction beyond just the cryptocurrency world with the latest development in Singapore indicating how the crypto’s technology could be used in innovative ways.
The Monetary Authority of Singapore (MAS) in collaboration with Deloitte, banks and blockchain companies has published a report about the first phase of the tokenised Singaporean dollar project called Project Ubin.
The project bring together some of the biggest names in the money business including Bank of America Merrill Lynch, Credit Suisse, DBS Bank, Hong Kong and Shanghai Banking Corporation, JPMorgan, Mitsubishi UFJ Financial Group, OCBC Bank, United Overseas Bank, Singapore Exchange and BCS Information Systems alongside MAS and Deloitte.
The distributed ledger network was designed to interface with existing MEPS+ and RTGS systems. The working integrated transfer prototype was staged into three main delivery areas. The first one was the establishment of a distributed ledger network.
“The DL network consisted of two MAS nodes running Ethereum and MQ Client with the genesis block created by one of the MAS nodes and eight bank nodes running Ethereum, MQ Client, and Common Payment Gateway (CPG),” the MAS report reads.
“MAS believe that DLT offers the potential to: improve domestic securities transactions, offering Delivery-vs-Payment (DvP) settlement in cases where it is not already available; significantly improve cross-border payments (Payment-vs-Payment) and securities transactions (DvP).”
The Singaporean Project Ubin was inspired by the model in Project Jasper of the Bank of Canada. But unlike Jasper, Ubin is based on the public blockchain of Ethereum. There is another significant technical difference between Ubin and Jasper. The Jasper model supposes that the Canadian Central Bank had a depository receipts account on the distributed ledger specifically for the creation, dissemination and destruction of the depository receipts, while the Ubin model implies that depository receipts are not created in the central bank’s depository receipt account.
Phase 1 of Project Ubin ran for six weeks from 14 November 2016 to 23 December 2016 and served as the foundation to assess the feasibility and implications of DLT. Currently the MAS moves to the Phase 2 of the project, which will focus on Delivery and Payment track and domestic payment system and potential cross-border opportunities