Successful Live Trial of Settlement of Interbank Overnight Lending Using Wholesale CBDC (MAS)
The Monetary Authority of Singapore (MAS) successfully completed a live trial for settlement of interbank overnight lending transactions using wholesale central bank digital currency (CBDC) on the Singapore Dollar Test Network (SGD Testnet). The trial involved three commercial banks, and featured the first live issuance of Singapore dollar wholesale CBDC, with transactions recorded in the banks’ official books and regulatory filings. The SGD Testnet offers functionalities including a common settlement asset, programmability for real-time conditional payments, and multi-asset atomic settlement, helping to reduce settlement risks and market fragmentation. MAS plans to build on this pilot by conducting a future trial for the issuance and settlement of tokenized MAS Bills via CBDC, with further details to be provided in 2026. [Source: MAS]
Cambodia and Singapore Launch Phase One of Their QR Payment Linkage (Fintech News)
Cambodia and Singapore have launched the first phase of a cross-border QR code payment linkage, enabling Cambodian travelers to use their Khmer Riel accounts to make fast, secure real-time payments in Singapore. Leveraging the Bakong app and participating mobile banking tools, users can scan SGQR merchant QR codes for instant transactions, eliminating the need for cash exchanges or physical cards. The initiative, unveiled at the Singapore Fintech Festival and supported by both public and private partners, aims to facilitate convenience for tourists, boost local currency usage in cross-border payments, and advance regional financial cooperation and digital innovation. This project aligns with goals to enhance trade, tourism, financial inclusion, and economic integration between the two nations. [Source: Bank of Cambodia]
MAS and Deutsche Bundesbank sign MoU on Tokenization and Cross-Border Settlement (MAS)
The Monetary Authority of Singapore (MAS) and the Deutsche Bundesbank signed a Memorandum of Understanding to collaborate on cross-border digital asset settlement. This partnership aims to develop innovative settlement solutions to lower costs and speed up processing for cross-border transactions between Singapore and Germany. It also seeks to establish common standards for payments, foreign exchange, and securities involving tokenized assets to improve interoperability across digital asset platforms. Building on MAS’s Project Guardian, the agreement is expected to deepen financial connectivity, foster efficiency, and lay the groundwork for future digital financial infrastructure between both economies. [Source: MAS]
Project Guardian Fixed Income Workstream Update (ICMA)
The International Capital Market Association (ICMA) published two key technical deliverables to the Monetary Authority of Singapore (MAS) Project Guardian Fixed Income Framework workstream. One was a guide for delivery versus payment (DvP) settlement of distributed ledger technology (DLT) based debt securities, comparing wholesale central bank digital currencies (CBDCs), tokenized bank deposits, and stablecoins. Each presents distinct opportunities and risks regarding counterparty exposure, liquidity, and operational considerations. Multiple settlement forms will coexist and require interoperability. Key challenges include legal clarity, custody arrangements, connectivity between on-chain and off-chain systems, and achieving settlement finality across different networks. The second deliverable was on lessons learned from custody arrangements for DLT-based debt securities, revealing common challenges. Key issues include determining whether tokenized securities require novel custody models or fit within traditional central securities depositories (CSDs), establishing legal clarity for investor eligibility, safeguarding private cryptographic keys, and integrating DLT platforms with existing systems. New contractual frameworks addressing roles, liabilities, and cross-border complexities are essential for scaling custody arrangements. [Source: ICMA]
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 code!]
The Digital Euro Conference 2026 (Frankfurt, March 26) will explore the future of money with a focus on CBDCs, stablecoins, and commercial bank tokens. This hybrid event offers the perfect platform to understand the future of digital money! [Register here and get 20% off the regular ticket price by using the Kiffmeister20 code!]
I produce a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) plus academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) It goes out via email on the first business day of every month, and if you’re interested in being on the mailing list, please email me at john@kiffmeister.com.