A prototype that enables payments to be made in different currencies on the same network has been developed by the Monetary Authority of Singapore (MAS), JPMorgan and Temasek.

This multi-currency payment network could improve cost efficiencies for businesses, said MAS, which led the development process.

It is undergoing industry testing to determine its ability to integrate with commercial blockchain applications.

Successful applications are being showcased at the Singapore FinTech Festival and Singapore Week of Innovation and Technology this week.

The prototype is the latest milestone for Project Ubin, a collaborative project by MAS with the financial industry to test the use of blockchain and distributed ledger technology for clearing and settling payments and securities.

The prototype payment network will provide interfaces for other blockchain networks to connect and integrate seamlessly.

MAS chief fintech officer Sopnendu Mohanty said yesterday: "We hope this development will encourage other central banks to conduct similar trials, and we will make the technical specifications publicly accessible to accelerate these efforts.

"We look forward to linking up with more blockchain networks to improve cross-border connectivity. This will be a big step forward in making cross-border transactions faster, cheaper and safer."

MAS and its partners have engaged more than 40 financial and non-financial firms to explore the potential benefits of the network.

Mr Chia Song Hwee, president and chief operating officer of Temasek, said: "The inclusion of non-financial services companies has demonstrated applicability of blockchain technology beyond capital markets and trade finance."

JPMorgan is the infrastructure partner of MAS and Temasek for the fifth phase of Project Ubin.