DBS, JP Morgan, and Temasek Advertise Today (April 28) it plans to develop an open industrial platform for payments, trade and foreign exchange settlement through a newly established technology company.
It’s called Partior, and it aims to disrupt the ‘pivot-and-talk’ model of cross-border payments, which is usually costly and lengthy due to multiple validations of payment details by banks.
Partior aims to meet the need for effective digital settlement and settlement solutions across the banking industry, and aims to address these challenges through the use of blockchain solutions.
Partior is looking to develop wholesale payment bars based on digital commercial bank money to enable “atomic” or instant settlement of payments for various types of financial transactions. This should help banks overcome the challenges presented by the current method of processing global payments.
The platform will begin to focus on easing flows primarily between Singapore-based banks in US dollars and Singapore dollars, with the aim of expanding service offerings to other markets and in various currencies.
The Parteor platform will also be designed to complement the central bank’s ongoing initiatives for digital currencies and use cases.
Banks will be called to join the platform
Partior’s operation by DBS, JP Morgan and Temasek and the completion of development, launch and availability of services on the proposed platform are subject to any required regulatory approvals and approvals.
When completed, the platform aims to provide a 24/7 infrastructure that will enable financial institutions and developers to create applications that support use cases such as foreign currency payment for payment (PVP), delivery against payment (DVP) and peer-to-peer escrow to complement financial ecosystems. Universality and adds value to it.
The current and pivoting arrangement in global payments often results in delays as confirmations are required from various intermediaries before a settlement is treated as final. “This, in turn, has an indirect effect and leads to inefficiencies in the final settlement of other assets,” said Piyush Gupta, chief executive of DBS.
“By leveraging the advantages of blockchain technology and smart contracts, the Partior platform will address current friction points. The open platform will enable banks around the world to offer real-time cross-border multi-currency payments, trade finance, foreign exchange settlements, and securities settlements versus pay-per-view. Pay on a world-class platform, with programming, stability and traceability built into its suite of services. ‘
To encourage broad participation across the banking industry, Partior will actively engage leading banks to join the platform to create the scale required to benefit the industry.
Chia Song Hwee, Executive Vice President, Temasek, has revealed that it has received interest from banks and other partners, and looks forward to welcoming them on board this new platform.
These efforts by DBS, JP Morgan, and Temasek build on their previous work as part of the Ubin Project, An industry initiative by the Monetary Authority of Singapore (MAS) to explore the application of blockchain technology involving multi-currency payments and settlements.
Sopnendu Mohanty, Head of FinTech at MAS, said.
Last December, DBS also planned to create a digital exchange to help institutional and certified investors take advantage of integrated coding and digital asset trading.
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