SBI Shinsei Bank to Test Tokenized Deposits in Collaboration with Partior and DeCurret

SBI Shinsei Bank from Japan has teamed up with Singapore’s Partior and Japan’s DeCurret DCP to investigate multicurrency tokenized deposits for international transactions.

The trio signed a Memorandum of Understanding (MoU) on Tuesday, intending to create a blockchain-powered settlement framework that facilitates real-time clearing in various currencies, as stated in their announcement.

DeCurret currently operates the DCJPY platform, enabling Japanese banks to issue yen-based tokenized deposits. SBI Shinsei aims to extend beyond the Japanese yen, planning to issue tokenized deposits in other key currencies to meet the rising demand for quicker international payments.

Partior provides a multicurrency settlement infrastructure already in use by prominent financial institutions such as JP Morgan, DBS, Deutsche Bank, and Standard Chartered. The platform accommodates US dollars, euros, and Singapore dollars, and will now look to add the Japanese yen through this partnership.

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24/7 Global Settlement Network

The aim of this collaboration is to establish a settlement system operational 24/7. SBI Shinsei will concentrate on the issuance aspect, DeCurret will connect its DCJPY system to Partior’s global network, and Partior will integrate yen functionality into its platform.

“The three firms will soon initiate discussions to clarify specific roles and responsibilities, with the objective of finalizing a formal business collaboration agreement at an early stage,” the announcement stated.

If successful, this initiative could offer an alternative to conventional correspondent banking—where a correspondent bank manages an account for a respondent bank and processes its payments—through the application of distributed ledger technology to expedite settlement times and reduce costs.

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Project Agora Aims for Tokenized Payments

Last year, the Bank for International Settlements (BIS) initiated “Project Agora” in collaboration with central banks from France, Japan, South Korea, Mexico, Switzerland, the UK, and the US Federal Reserve. The project seeks to link tokenized commercial bank deposits with tokenized wholesale central bank money using a unified ledger approach.

The goal is to optimize global payments, diminish cross-border inefficiencies, and enable smart contract functionalities while maintaining the two-tier banking system.