Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) have contracted consulting firm, Accenture to develop and manage a blockchain-based platform for interbank transactions. The company announced on Thursday that they would work with MAS and ABS to develop a prototype using three distributed ledger technology (DLT) platforms.
The project is part of the second phase of Project Ubin, a global initiative to explore the use of Distributed Ledger Technology (DLT) for the clearing and settlement of payments and securities. Project Ubin was led by MAS and ABS and a group of financial institutions, including Bank of America Merrill Lynch, Citi, Credit Suisse, DBS Bank Ltd, HSBC Limited, J.P. Morgan, Mitsubishi UFJ Financial Group, OCBC Bank, Singapore Exchange, Standard Chartered Bank, and United Overseas Bank.
Project Ubin, which was first announced on 16th November 2016 by MAS has two major phases. The Phase 1 focused on a proof-of-concept and was concluded in March 2017.
This lap of the project would focus on specific Real Time Gross Settlement (RTGS) functionalities such as gridlock resolution and a liquidity-saving mechanism on a decentralized system without compromising privacy.
Accenture would be using their digital lab and prototyping studio in Singapore to carry out the project. Accenture Liquid Studio Singapore was established to bring design thinking, innovation and new IT together to resolve client and industry challenges. The firm has sustained a long history of involvement innovative technologies since they helped install the first ever commercial computer for GE.
Leading the Blockchain Revolution
With more and more organizations seeking to exploit the benefits of blockchain technology, this project is already leading the way the industry. Chief FinTech Officer, MAS stated, “We look forward to working with other central banks on the use of DLT for cross-border applications.” A press statement on 5th October announced success already achieved in this phase.
According to Vithlani, “Singapore is uniquely positioned to lead this cutting-edge innovation journey and we are leveraging the best of Accenture, both locally and globally in financial services, particularly in payments and DLT to ensure success.”
Accenture will publish the report of the project during the Singapore FinTech festival taking place from 13th to 17th November.