Singapore's payment network Ubin enters the commercial application phase, Mitsubishi UFJ Financial Group to launch digital currency by the end of the year.

A blockchain payment system called Ubin, developed by the Monetary Authority of Singapore (MAS), Temasek Holdings, and JPMorgan, has completed its fifth phase of testing and is now set to move towards practical adoption and commercialization. In addition, the largest financial group, Mitsubishi UFJ Financial Group (MUFG), has announced plans to launch its digital currency "Coin" by the end of this year.

Singapore Blockchain Project Enters Commercial Phase

Ubin is a blockchain payment network developed by the Monetary Authority of Singapore (MAS) in 2016. The project aims to explore the potential applications of blockchain technology in payment and securities settlement. According to reports, the project has completed its fifth and final testing phase and is now preparing to further integrate it into commercial applications.

The first two phases of the Ubin project focused on building technical capabilities within domestic payment networks, while the third and fourth phases emphasized interoperability in blockchain-based Delivery Versus Payment (DVP) and Cross-border Payment-versus-Payment (PvP) networks. The success of these four phases provided strong evidence of the project's technical feasibility. The final fifth phase focused on proving the system's value, such as improving settlement efficiency compared to existing systems. Ultimately, the fifth phase was successfully completed.

Sopnendu Mohanty, Chief Fintech Officer at the MAS, stated:

"Following the successful experimentation over five phases, we look forward to blockchain technology entering larger-scale adoption and real-world deployment."

It is worth noting that the Ubin system was jointly developed with Temasek Holdings, a Singapore government-owned investment company, and JPMorgan, using JPMorgan's Quorum blockchain protocol as the underlying infrastructure, with interoperability with the Interbank Information Network (IIN) and JPM Coin.

Umar Farooq, Head of Blockchain at JPMorgan, expressed the bank's desire to collaborate with MAS, Temasek, and other banks to develop and expand commercial solutions for the industry. According to a report released in the fifth testing phase by Accenture,the reportpoints out that various sectors, including capital markets, trade and supply chain finance, insurance, and areas beyond financial services, are expected to benefit from integration with the Ubin payment network.

MUFG to Launch Digital Currency by Year-End

On another note, Japan has seen new advancements in the commercial adoption of blockchain technology. According to the Asahi Shimbun, Japan's largest financial group, Mitsubishi UFJ Financial Group (MUFG), is set to launch its digital currency "Coin" later this year. Hiroki Kamezawa, CEO of Mitsubishi Group, stated in an interview with the Asahi Shimbun on the 10th of this month:

"Although the launch is somewhat delayed, coupled with the pandemic (restricting people from going out), now might be a good timing. We aim to combine Recruit's (a well-known Japanese job site) young user base with our financial expertise to launch services."

The digital currency will be operated jointly by MUFG and the Japanese internet company Recruit, initiated in 2017, and was initially planned for commercial application in 2019, but delayed due to restrictions in Japan's Banking Act. According to reports, "Coin" will have a 1:1 exchange rate with the Japanese yen, usable for payments and convertible back to cash into bank accounts. Additionally, it is expected to be utilized on Japanese travel booking site Jalan and gourmet discount coupon site Hot Pepper Gourmet after its launch.