Project Ubin Releases Source-Codes of DLT Prototypes for Inter-Bank Payments

Announcements, Blockchain, FinTech, Group | November 15, 2017 By:

Project Ubin has released the source-codes on blockchain software prototypes for inter-bank payments for public access.

First unveiled in November 2016, Project Ubin is a collaborative project with the banking industry to explore the use of distributed ledger technology (DLT) for clearing and settlement of payments and securities. The project, led by the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS), aims to help the banking industry better understand the technology and the potential benefits it may bring through practical experimentation.

The consortium includes Bank of America Merrill Lynch, Credit Suisse, DBS Bank, The Hongkong And Shanghai Banking Corporation Limited, J.P. Morgan, Mitsubishi UFJ Financial Group, OCBC Bank, R3, Singapore Exchange, UOB Bank, and BCS Information Systems as a technology provider to the project.

Under the Phase 2 of Project Ubin, the consortium successfully developed software prototypes of three different models for decentralized inter-bank payment and settlements with liquidity savings mechanism. The prototypes were developed on three DLT platforms – Corda, Hyperledger Fabric, and Quorum.

MAS explained that existing netting programs rely on a single payment queue visible to the operator to find offsetting payments. Decentralizing the queue has the potential to expose payment details to an unauthorized party. MAS added that the software models developed in Project Ubin achieve a superior combination of decentralization and privacy. They are among the first in the world to implement decentralized netting of payments in a way that preserves transactional privacy.

The source-codes and technical documentation of the three prototypes have now been released for public access under Apache License Version 2.0 with the objective of encouraging academics, financial institutions and other central banks to re-use the code for their own tests.

MAS Chief FinTech Officer Sopnendu Mohanty stated that open-sourcing these prototypes will encourage other central banks to conduct similar trials and engender further development on domestic inter-bank payments.

“We aim to link up such DLT-based systems in the future for improved cross-border connectivity,” said Mohanty “This is our contribution to the global financial ecosystem, and a step towards developing cheaper, safer and more efficient cross-border payments.”

ABS director Ong-Ang Ai Boo said that Project Ubin has brought the banks together in experimenting with DLT in a collaborative, and multidisciplinary manner.

“We see immense benefits from such industry partnership that creates a vibrant ecosystem,” said Ai Boo. “We are also encouraged that the fruits of our project can be shared with other central banks and players in the financial industry to catalyse more innovations.”