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MAS to test blockchain technology on bond trading settlement, cross-border payments
THE Monetary Authority of Singapore (MAS) on Thursday said that it would test blockchain technology on settlement in bond trading to make the process more efficient. The project will be driven by the Singapore Exchange.
MAS will also focus on new methods to conduct cross-border payments using central bank digital currency.
It is in early stages of discussions to develop links from Singapore to other countries using distributed ledger technology (DLT) to allow cross-border payments to settle directly using central bank accounts.
The central bank said that this follows the successful conclusion of the proof-of-concept project to conduct domestic inter-bank payments using DLT, which powers the use of blockchains.
The project has achieved the objectives of producing a digital representation of the Singapore dollar for interbank settlement, testing methods of connecting bank systems to a DLT, and making the MAS Electronic Payment System (MEPS+) interoperate with the DLT for automated collateral management.
Sopnendu Mohanty, chief fintech officer at MAS, said: "This wholesale payments project has demonstrated the commitment of MAS and the industry to co-create concrete use-cases for technologies such as DLT.
"Already, some institutions have embarked on projects that are inspired by this collaboration. We look forward to the next phases of our project which will develop trial applications for securities settlement and cross-border payments."