TLDR
- SBI Shinsei has partnered with Partior and DeCurret to explore tokenized deposits for cross-border transactions.
- The collaboration aims to create a blockchain-based settlement system for real-time clearing in multiple currencies.
- SBI Shinsei plans to expand beyond the Japanese yen, issuing tokenized deposits in other major currencies.
- Partior brings valuable infrastructure already used by top financial institutions to support multicurrency settlements.
- The partnership seeks to reduce settlement times and transaction costs, offering an alternative to traditional correspondent banking.
SBI Shinsei Bank has partnered with Partior and DeCurret DCP to explore tokenized deposits for cross-border transactions. The three companies aim to create a blockchain-based settlement system for real-time clearing in multiple currencies. This collaboration seeks to enhance international payments by offering a faster, more efficient alternative to traditional banking systems.
SBI Shinsei Collaborates with Partior and DeCurret
On Tuesday, SBI Shinsei signed a Memorandum of Understanding (MoU) with Singapore-based Partior and Japan’s DeCurret DCP. Their partnership will focus on developing a multicurrency tokenized deposit system to streamline cross-border payments. The initiative will leverage blockchain technology to offer real-time settlement capabilities in various currencies.
SBI Shinsei Bank intends to expand beyond the Japanese yen, which is currently supported on DeCurret’s DCJPY platform. The bank aims to issue tokenized deposits in major currencies to meet growing demands for quicker international transactions. This move reflects SBI Shinsei’s commitment to improving payment systems globally.
DeCurret’s DCJPY platform enables banks to issue yen-denominated tokenized deposits. By collaborating with Partior, SBI Shinsei plans to extend the platform’s functionality to include other currencies. Partior’s multicurrency infrastructure is already used by major financial institutions, enhancing the initiative’s reach and potential.
Expansion of Multicurrency Settlement System
Partior brings valuable expertise in multicurrency settlement, with infrastructure already supporting US dollars, euros, and Singapore dollars. With this partnership, Partior plans to add Japanese yen to its settlement system. This will allow seamless integration of currencies for cross-border transactions, benefitting banks and financial institutions worldwide.
The goal of this partnership is to create a 24/7 settlement framework, offering continuous availability for transactions. SBI Shinsei will handle the issuance of tokenized deposits, while DeCurret will connect its DCJPY system to Partior’s network. Partior’s role will be to integrate yen support into its settlement platform, ensuring a unified and efficient solution.
As a result of this collaboration, SBI Shinsei, DeCurret, and Partior aim to reduce settlement times and transaction costs. This could offer a significant alternative to traditional correspondent banking. Distributed ledger technology will be at the core of the system, streamlining the process and improving transparency in cross-border payments.
Potential to Revolutionize Cross-Border Payments
The partnership between SBI Shinsei, Partior, and DeCurret aligns with global trends toward adopting blockchain for financial systems. These companies hope to build on similar initiatives such as Project Agora, led by the Bank for International Settlements. By connecting tokenized commercial bank deposits with central bank money, the project aims to enhance global payment efficiency.
Furthermore, Project Guardian, led by Singapore’s central bank, explores similar tokenization solutions for securities trading and forex transactions. These efforts demonstrate a growing interest in improving speed, transparency, and efficiency across international financial systems. SBI Shinsei’s collaboration with Partior and DeCurret will contribute to these ongoing advancements in the digital payment ecosystem.
