(Singapore, 11 November 2024) – The Monetary Authority of Singapore (MAS) and its partners proudly announce the successful completion of Phase 3 of Project DESFT, a key milestone in advancing cross-border trade for small and medium-sized enterprises (SMEs). Leveraging cutting-edge innovations such as Universal Trusted Credentials (UTCs) and Purpose-Bound Money (PBM), this phase showcases the future of global trade with live transactions successfully conducted between Australia and China.
Phase 3 Highlights:
Demonstrated use of scaled application of PBM and UTC to USD 100K in real-time cross-border trades between Australia and China.
Collaboration with leading financial technology firms and stablecoin providers to ensure smooth and transparent operations.
Seamless integration of multi-currency, multi-phase programmable payments with trade document-triggered fund release, enabling secure and efficient transactions for business use cases.
In Phase 3, Proxtera’s trade platform empowered traders to complete their UTCs efficiently. At the same time, Ample FinTech spearheaded the development of the ERC3525-based PBM technology, further enhancing the flexibility and security of cross-border payments. Liquid Group facilitated foreign exchange transactions from CNY to SGD which enabled the issuance of the stablecoin XSGD, issued by StraitsX, subsequently traded for AUDD, issued by AUDC, ensuring smooth and compliant multi-currency conversion.
Addressing the Challenges for SMEs
SMEs have traditionally faced numerous obstacles in international trade, including inefficiencies, high costs, and difficulties establishing trust with overseas partners. Complex paperwork, lengthy payment processes, and a lack of transparency have often limited their success in the global market. Project DESFT Phase 3 addresses these challenges head-on by employing advanced blockchain technologies to streamline the trade process.
PBM technology automates critical elements of cross-border trade—from contract agreements to staged payment releases—all secured on the blockchain. This automation ensures that documentation is verified in real-time, and payments are made only when predefined conditions are met. The result is reduced paperwork, minimized errors, and faster, more secure payment processing for all stakeholders. Moreover, by seamlessly integrating financial flows with information flows, PBM technology can eliminate the need for traditional auditing and accounting processes, as all transactions are transparently verified on the blockchain.
Universal Trusted Credentials (UTCs), developed in the earlier phases of Project DESFT, are pivotal in establishing trust between trade partners. By converting company data, licenses, and transaction histories into verifiable digital credentials, UTCs allow businesses to build trust quickly and securely, enabling more efficient trade relationships.
Collaboration Between Key Players
Phase 3’s success was driven by the active collaboration of key industry partners. Ample FinTech drove innovation with the development of PBM ERC3525 contracts, facilitating multi-phase payments across digital currencies. Proxtera’s platform enabled traders to efficiently complete their UTCs and manage their transactions, while Liquid Group oversaw currency exchange services, ensuring seamless conversion between CNY and SGD.
StraitsX, as the issuer of XSGD, and AUDC, the issuer of AUDD, were instrumental in facilitating stablecoin transactions, ensuring both transparency and regulatory compliance throughout the process. The Monetary Authority of Singapore (MAS) provided critical oversight and guidance, ensuring the project adhered to regulatory frameworks while maintaining the highest standards of security and efficiency.
Quotes from Buyer and Seller
Seller (Haopin World, a platform focused on cross-border trade, has made significant contributions to enhancing trading scenarios):
“For us, the reduction in paperwork and manual processes has been game-changing. The integration of Purpose Bound Money allows us to receive payments in stages, based on verified documents, giving us peace of mind that our trade agreements are fulfilled without the traditional risks. We’re excited to see how this technology can continue to evolve our business operations.”
Buyer (ZZCINT):
“Being able to conduct trades securely and transparently through the DESFT platform has revolutionised the way we approach international trade. The process is seamless, with clear, automated steps ensuring that we meet every trade milestone with confidence. This technology saves us time and money, allowing us to focus on growing our business.”
Empowering SMEs Through Innovation
“I am heartened to see bold innovations like Project DESFT, which intelligently utilises purpose bound smart contracts to wrap trust credentials, digital money and underlying trade verifications into an efficient token. This presents an exciting new opportunity for SMEs, fintechs and FIs to effortlessly use smart tokens to reach new markets and new partners in a trusted and affordable manner. ” Said Sopnendu Mohanty, Group Chief Executive Officer Designate, Global Finance & Technology Network
Future Developments and Outlook
Phase 3 marks a pivotal step toward full commercialisation, aiming to simplify cross-border trade for SMEs. The project’s next steps include expanding programmable payment functionalities, further supporting instant multi-currency transactions using additional stablecoins document-triggered fund releases and invoice tokenisation.
As the project progresses, a comprehensive white paper will be released, outlining the key results and innovations from Phase 3. These achievements will also be showcased at the upcoming Singapore FinTech Festival (SFF) 2024. Looking ahead, Project DESFT will continue to evolve, with future phases designed to position SMEs at the forefront of global trade by equipping them with the necessary tools to succeed in the digital economy.
About Project DESFT
Initiated by the Monetary Authority of Singapore (MAS), Project DESFT seeks to revolutionise cross-border trade for SMEs through the use of blockchain technology, digital currencies, and programmable payments. By leveraging the power of UTCs and PBM, the project is setting a new standard for secure, transparent, and efficient trade processes.
For more information, visit https://amplefintech.com/.
