The Monetary Authority of Singapore (MAS) said Wednesday that it is partnering with R3, a Blockchain technology company, and a consortium of financial institutions on a proof-of-concept project to conduct inter-bank payments using Blockchain technology.
The 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.
The consortium includes 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.
The project will develop a pilot system in which Blockchain infrastructure is used to issue and transfer funds among participants. Such a system will also be more resilient against stoppages by decentralizing and distributing the software that records and validates payments, said MAS.
“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,” said Sopnendu Mohanty, Chief FinTech Officer, MAS. “MAS is engaging with the industry and working closely with our partners to explore innovative payment solutions,” he added.