Ubin+: Advancing Cross-Border Connectivity with Wholesale Digital Currencies
What It Is
Ubin+ is an expanded collaboration with international partners on cross-border foreign exchange (FX) settlement using wholesale digital currencies.
This initiative aims to strengthen Singapore’s capabilities to use digital currency-based infrastructure for cross-border transactions. Ubin+ builds on the foundation of Project Ubin (2016-2020) together with the learnings from MAS’ participation in Project Dunbar, and the multi-currency corridor network collaboration with Banque de France (BdF).
Ubin+ consists of a series of projects to explore the potential models of digital currency connectivity.
Ubin+ Projects
Project Cedar Phase II x Ubin+ is a collaboration between The Federal Reserve Bank of New York’s New York Innovation Center (NYIC) and MAS to enhance designs for atomic settlement of cross-border cross-currency transactions, leveraging wholesale central bank digital currencies (CBDC) as a settlement asset. The effort entails establishing connectivity across multiple heterogeneous simulated currency ledgers. This aims to significantly reduce settlement risk, a key pain point in cross-border cross-currency transactions.
The project has three main objectives:
- Explore the design and application of AMMs for wholesale CBDCs
- Investigate if a supra-regional network could work as an efficient and trusted hub for cross-border settlement
- Research wholesale CBDC governance models within that network.
More information can be found in the press releases by MAS and BISIH .
More information can be found in the press release.