Singapore consortium yields DLT solutions for clearing, settlement of payments, securities
A consortium led by the Monetary Authority of Singapore and the Association of Banks in Singapore has developed software prototypes of three models for decentralized interbank payment and settlements with liquidity savings mechanisms.
According to a press release, the models are the result of phase two of Project Ubin, which explores the use of distributed ledger technology for clearing and settlement of payments and securities.
The software models implement decentralized netting of payments in a manner that preserves transactional privacy, the release said.
Existing netting programs used in interbank payments rely on a single payment queue visible to the operator to find offsetting payments. However, decentralizing the queue potentially exposes payment details to an unauthorized party. The latest models in Project Ubin achieve a superior combination of decentralization and privacy.
In mid-November, Accenture will publish a report on the project findings and details of the prototypes to help central banks and FIs understand the platform characteristics and design considerations of commonly used DLT platforms.
Participating financial institutions include Bank of America Merrill Lynch, Citi, Credit Suisse, DBS Bank Ltd., HSBC Ltd., JPMorgan Chase, Mitsubishi UFJ Financial Group, OCBC Bank, Singapore Exchange, Standard Chartered Bank, and United Overseas Bank. Accenture was appointed to manage and develop the prototypes. R3, IBM, and ConsenSys were engaged to provide support on the respective DLT platforms of Corda, Hyperledger Fabric and Quorum. Microsoft was engaged to support the deployment of the prototypes on Azure Blockchain.