Accenture Consulting the MAS on Project Ubin
U.S. consulting company Accenture (ACN) has been working with the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) to manage and develop a blockchain-based platform for interbank payments. The company has been involved in the exploration of the use of blockchain technology for specific RTGS functions, including the feasibility of decentralizing liquidity-saving mechanisms, while maintaining privacy in banking transactions.
At its Accenture Liquid Studio in Singapore, Accenture has been working on the development and testing of interbank payment models using three blockchain platforms: Quorum, R3 Corda, and Hyperledger Fabric.
Project Ubin aims to improve how central banks and financial institutions deal with the settlement of payments. It focuses on specific real-time gross settlement features and a liquidity-saving mechanism on a decentralized system, without compromising privacy. The project is being led by the MAS and ABS, and includes other big banking names such as Bank of America Merrill Lynch (BAC), Citigroup (C), Credit Suisse (CSGN), DBS Bank Ltd, HSBC (HSBC), JPMorgan (JPM), Mitsubishi UFJ Financial Group (MTU), OCBC Bank, Singapore Exchange, Standard Chartered Bank (SCBFF), and United Overseas Bank.
Four key Takeaways From Project Ubin Phase 2 Completion
Tests conducted by the company in 2017 during its 13-week project (comprising Phase 2 of Project Ubin) have already confirmed (as published in their report) that:
- Real-time gross settlement (RTGS) functionalities such as gridlock resolution and a liquidity-saving mechanism work on a decentralized system
- Blockchain-based designs can effectively preserve privacy in such transactions
- A blockchain-based system could also help mitigate interbank payment risks by increasing system resiliency through the removal of a single point of failure and providing cryptographic security, immutability, and real-time processing
- A blockchain-based RTGS system would reduce the costs and resources of day-to-day operations and eliminate the risk of the central bank becoming a single-point-of-failure in a systemic disturbance.
David Treat, Managing Director at Accenture’s global blockchain practice, is now excited about what can be achieved in the upcoming phases.” Treat sees an opportunity to demonstrate blockchain’s potential to support additional types of financial transactions and cross-border connectivity.
ACN up 40%+ in the Past Year
Accenture’s deep involvement in blockchain technology and its applications have already made it one of the top bets in the steadily growing industry. Blockchain-based funds such as the Reality Shares NASDAQ NexGen Economy ETF (BLCN) and the Amplify Transformational Data Sharing ETF (BLOK) have a 1.82% and 2.87% respective portfolio weight allocated to the stock. The stock, ACN, has surged over 40% in the past year (as of February 2nd 2018).
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