Japan’s SBI Shinsei Bank cooperated with Singapore-based partior and Japan’s Decurret DCP to explore multicurrency tokenized deposits for cross-border transactions.
The three companies signed a Memorandum of Understanding (MOU) on Tuesday, aimed at developing a Blockchain-based settlement framework that supports real-time clearing with a lot of money, According to In an announcement.
Decurret is currently running the DCJPY platform, which allows banks in Japan to issue a yen-denominated tokenized deposit. SBI Shinsei plans to expand beyond the Japanese yen, aimed at issuing tokenized deposits to other major currencies to meet the growing demand for faster international payments.
Partior carries a multicurrency infrastructure that has already been used by major financial institutions, including JP Morgan, DBS, Deutsche Bank and Standard Chartered. The platform supports the US dollar, euro and dollar of Singapore, and will now be viewed to include Japanese Yen as part of this collaboration.
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24/7 Global Settlement Network
The purpose of the collaboration is to create a regulating system available 24/7. SBI Shinsei will focus on the release side, Decurret connects the DCJPY system to the international partior network, and the partior will incorporate yen support to its platform.
“The three companies are about to start discussions to identify detailed duties and responsibilities with the aim of ending a formal business cooperation agreement at an early stage,” according to the announcement.
If successful, the initiative can offer an alternative to traditional banking of corresponding, in which the correspondent bank opens and maintains an account for a respondent bank and facilitates its payments, by using the shared ledger technology to reduce the time and costs.
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Project Agora targets tokenized payments
Last year, the Bank for International Settlements (BIS) “Project Agora” launched In collaboration with Central Banks from France, Japan, South Korea, Mexico, Switzerland, the UK and the US Federal Reserve. The project aims to connect tokenized commercial bank deposits with tokenized wholesale central currency with a one -sided ledger concept.
The goal is to streamline global payments, reduce cross-border ineffectives and enable the function of the smart contract, while maintaining the two-tier banking system.
