DBS, JP Morgan and Temasek announced today (April 28) plans to develop an open industry platform for payments, trading and currency settlement through a newly created technology company.
Called Partior, it aims to break the traditional “hub and speak” model of cross-border payments, which is often costly and lengthy due to multiple validations of payment details by banks.
Partior aims to address the need for efficient digital clearing and settlement solutions across the banking industry and aims to address these challenges through the use of blockchain solutions.
The Partior platform wants to develop money-based wholesale payment rails from digitized commercial banks to enable “atomic” or instant settlement of payments for various types of financial transactions. This would help banks overcome the challenges posed by the existing method of processing global payments.
The platform will start by focusing on facilitating flows mainly between Singapore-based banks, both in US dollars and in SGD, with the intention of expanding the range of services to other markets and in various currencies.
The Partior platform will also be designed to complement ongoing initiatives and use cases of the Central Bank for Digital Currency (CBDC).
Banks will be called to join the platform
The operation of Partior by DBS, JP Morgan and Temasek and the completion of the development, launch and availability of services on the proposed platform are subject to obtaining the necessary regulatory consents and approvals.
When complete, the platform aims to provide infrastructure 24 hours a day, 7 days a week, which will allow financial institutions and developers to co-create applications that support use cases such as Cash Payment Payment (PVP), Cash on Delivery (DVP) and Peer-to-Peer Escrow to complement and add value to global financial ecosystems.
“The current agreement on concentration and settlement in global payments often entails delays, as confirmations from several intermediaries are needed before an agreement is considered final. In turn, this has an incidental effect and creates inefficiencies in the final settlement. other assets, ”said Piyush Gupta, CEO of DBS Bank.
“Taking advantage of the technology of smart contracts and blockchain, the Partior platform will address the current points of friction. The open platform will allow banks around the world to provide real-time cross-border multi-currency payments, commercial financing, currency and DVP securities settlements on a global platform, with programmability, immutability and traceability integrated into their suite of services. ”
To encourage broad participation across the banking industry, Partior will actively participate in leading banks to join the platform to establish the scale needed to benefit the industry.
Chia Song Hwee, deputy general manager of Temasek, revealed that they have received interest from other banks and partners and look forward to welcoming them as this new platform develops.
These efforts by DBS, JP Morgan and Temasek are based on their past work as part of Project Ubin, a Singapore Monetary Authority (MAS) industry initiative to explore the application of blockchain technology involving multi-currency payments and settlements.
“With its genesis of the Ubin Project, Partior is a pioneering step towards providing a key global infrastructure for digital currency transactions in a trusted environment, spurring a wide range of use cases in the chain ecosystem. blocks, ”said Sopnendu Mohanty, CEO of FinTech at MAS.
Last December, DBS also planned to establish a digital exchange to help institutional and accredited investors take advantage of tokenization and trade in fully integrated digital assets.
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