Conclusion of Project Ubin paves way for real-world implementation
Project Ubin: A public-private initiative to explore the use of DLT for clearing and settlement of payments and securities
At the end of 2016, the Monetary Authority of Singapore (MAS) launched Project Ubin – a collaborative project with the industry to explore the use of Distributed Ledger Technology (DLT) for the clearing and settlement of payments and securities. This was a multi-year, multi-phase project, which brought together traditional financial institutions, FinTechs and DLT companies. Each phase explored DLT-driven improvements to various aspects of the clearing and settlement process, with phase 1 and 2 focused on the building of technology capabilities, phase 3 and 4 on network interoperability and finally, phase 5 on the viability of use cases and validation of commercial value across the ecosystem.
Conclusion of phase 5, move towards implementation
The fifth and final phase of Project Ubin has been successfully concluded, and this marks the end of MAS’ technology experimentation and a shift towards implementation of live commercial solutions to solve real-world challenges. This phase saw the successful development of a “Ubin V” multi-currency payments network prototype and the submission of sixteen use-cases from industry participants, spanning the areas of capital markets, trade and supply chain finance, insurance, and non-financial services. Findings have been published in a report “Project Ubin Phase 5: Enabling Broad Ecosystem Opportunities” which was jointly released by MAS and Temasek.
Sygnum – tackling cross-border settlement for digital securities
As part of Ubin V, Sygnum’s MAS-licensed Singapore entity contributed a case study to optimize cross-border settlements of digital security transactions and corporate actions (page 34 of report), leveraging the Ubin V network and Sygnum's DLT infrastructure, including Sygnum´s Digital CHF (DCHF). This builds on the tokenization value chain which we are currently building – a holistic and seamless solution that realises the potential benefits of DLT-based financial infrastructure across the entire life cycle of a security. Part of this is the facilitation of real-time transfers and immediate Delivery versus Payment (DvP) T+0 settlement using asset and settlement tokens. The Ubin V use case takes this one step further to enable this on a cross-border basis.
In March this year, Sygnum launched Digital CHF (DCHF) token, a fully collateralised settlement token pegged to the Swiss Franc. We are currently in the process of finalising our asset-agnostic DLT based tokenisation offering , which will complete the value chain and bring this vision to life.
Ecosystem approach critical to adoption of solutions
Project Ubin brought together the relevant players in the financial industry (and beyond), and its emphasis on interoperability underscores the importance that MAS places on an ecosystem approach. Sygnum is proud to have been a part of this initiative and we look forward to what comes next.
“We are incredibly excited to see the innovations in the clearing and settlements space that can now be brought to end users, and Sygnum is committed to collaborating with MAS and other partners in the Singapore ecosystem to support the broader adoption of DLT-based solutions.”
Gerald Goh, Sygnum Chief Strategy Officer
This document was prepared by Sygnum Bank AG. This document may contain forward looking statements and may be subject to change. The opinions expressed herein are those of Sygnum Bank AG, its affiliates and partners at the time of writing. The document is for informational purposes only and contains general material. It is for use by the recipient only. It does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum Bank AG to purchase or sell assets or securities. It is not intended to be used as a general guide to investing, and should be used for informational purposes only. When making an investment decision, you should either conduct your own research and analysis or seek advice from an expert to make a calculated decision. The information and analyses contained in this document have been compiled from sources believed to be reliable. However, Sygnum Bank AG makes no representation as to its reliability or completeness and disclaims all liability for losses arising from the use of this information.