Unifying Digital Money: MAS Proposes Common Protocol for CBDCs, Tokenized Bank Deposits, and Stablecoins

The Monetary Authority of Singapore (MAS) recently published a whitepaper proposing a common protocol for the use of digital money. The whitepaper, developed in collaboration with the International Monetary Fund, Banca d’Italia, Bank of Korea, financial institutions, and FinTech firms, aims to specify conditions for the use of digital money, such as central bank digital currencies (CBDCs), tokenized bank deposits, and stablecoins, on a distributed ledger.

Protocol Background

The Protocol for a Common API-based Design for Digital Payment Tokens (PBM) is designed to work with different ledger technologies and forms of money. It provides a common interface for the exchange of information between digital money wallets, enabling interoperability across different platforms. The protocol is intended to facilitate more efficient and secure transactions with digital money while promoting innovation and competition in the payments industry.

The PBM whitepaper proposes a modular architecture that allows for customization to meet the specific needs of different use cases and regulatory requirements. The protocol includes modules for user authentication, payment initiation, transaction verification, and settlement. Each module can be used independently or in combination with others, allowing for flexibility and scalability.

Trials and testing

Financial institutions and FinTech firms are launching trials to test the usage of PBM under different scenarios. The trials aim to validate the protocol’s functionality, security, and scalability in real-world situations. The testing will also help identify potential issues and inform further improvements to the protocol. The trials will involve the use of different forms of digital money, including CBDCs, stablecoins, and tokenized bank deposits. The trials will simulate different scenarios, such as cross-border payments, micropayments, and peer-to-peer transactions. The results of the trials will be used to refine the protocol and inform regulatory decisions.

Project Orchid

The PBM whitepaper builds on MAS’s Project Orchid, which explores the use of distributed ledger technology (DLT) for cross-border payments. Project Orchid aims to improve the efficiency, speed, and cost-effectiveness of cross-border payments by leveraging DLT. The project has achieved several milestones, including the development of prototypes for a cross-border payments network and a digital currency exchange. The PBM whitepaper extends the work of Project Orchid by proposing a common protocol for digital money that can be used across different use cases and regulatory regimes. The whitepaper aims to encourage greater research among central banks, FIs, and FinTechs to understand the design considerations in the use of digital money.

PBM source codes and software prototypes

To support ongoing development and learning, PBM source codes and software prototypes developed under Project Orchid were released today for public access. The open-source codes and prototypes demonstrate how PBM can be used to embed digital money in escrow arrangements. This serves as a reference model to foster interoperability across different platforms. The release of PBM source codes and software prototypes is a significant milestone in the development of digital money. It allows developers to experiment with PBM and contribute to its further development. By releasing the code as open source, MAS is promoting collaboration and innovation in the payments industry.

Mr. Sopnendu Mohanty, Chief FinTech Officer at MAS, said, “This collaboration among industry players and policymakers has helped achieve important advances in settlement efficiency, merchant acquisition, and user experience with the use of digital money. More importantly, it has enhanced the prospects for digital money becoming a key component of the future financial and payment landscape.”

Explore more

Trend Analysis: AI in Real Estate

Navigating the real estate market has long been synonymous with staggering costs, opaque processes, and a reliance on commission-based intermediaries that can consume a significant portion of a property’s value. This traditional framework is now facing a profound disruption from artificial intelligence, a technological force empowering consumers with unprecedented levels of control, transparency, and financial savings. As the industry stands

Insurtech Digital Platforms – Review

The silent drain on an insurer’s profitability often goes unnoticed, buried within the complex and aging architecture of legacy systems that impede growth and alienate a digitally native customer base. Insurtech digital platforms represent a significant advancement in the insurance sector, offering a clear path away from these outdated constraints. This review will explore the evolution of this technology from

Trend Analysis: Insurance Operational Control

The relentless pursuit of market share that has defined the insurance landscape for years has finally met its reckoning, forcing the industry to confront a new reality where operational discipline is the true measure of strength. After a prolonged period of chasing aggressive, unrestrained growth, 2025 has marked a fundamental pivot. The market is now shifting away from a “growth-at-all-costs”

AI Grading Tools Offer Both Promise and Peril

The familiar scrawl of a teacher’s red pen, once the definitive symbol of academic feedback, is steadily being replaced by the silent, instantaneous judgment of an algorithm. From the red-inked margins of yesteryear to the instant feedback of today, the landscape of academic assessment is undergoing a seismic shift. As educators grapple with growing class sizes and the demand for

Legacy Digital Twin vs. Industry 4.0 Digital Twin: A Comparative Analysis

The promise of a perfect digital replica—a tool that could mirror every gear turn and temperature fluctuation of a physical asset—is no longer a distant vision but a bifurcated reality with two distinct evolutionary paths. On one side stands the legacy digital twin, a powerful but often isolated marvel of engineering simulation. On the other is its successor, the Industry