SINGAPORE / ACCESSWIRE / 23 July 2024 / Ample FinTech, a Singapore-based FinTech company, today unveiled its new programmable money technology PBM3525. This technology enables individuals and business users to configure and customize payment terms and logic on blockchains without involving financial intermediaries or programming smart contracts themselves. Ample FinTech said it has successfully applied this technology in Project DESFT, a pilot cross-border trade and payment solution supported by the Monetary Authority of Singapore and the Bank of Ghana. According to the startup’s leaders, PBM3525 is a general-purpose technology to digitize a variety of payment and financial instruments such as utility bills, invoices, letters of credit, commercial bills, swap agreements, and more.

In the global fintech and financial innovation sectors, tokenization and distributed ledger technology (DLT) have become hot topics. Many central banks around the world have launched pilot projects on Central Bank Digital Currency (CBDC), tokenized deposits, stablecoins and DLT to explore the potential of these technologies in the digital economy, especially in cross-border payments, international trade and supply chain finance. The DESFT project is a notable example among these central bank pilot initiatives.

In May 2024, the DESFT project completed its first cross-border payment pilot. The transaction used the Singapore dollar stablecoin and the Central Bank of Ghana digital currency (CBDC), eCedi. The pilot successfully employed PBM3525, an extension of the “Purpose-Bound Money” technology, to facilitate the cross-border transaction.

Purpose-Bound Money (PBM) is a new advanced programmable payment technology. Before this innovation, there were two main models to control and automate payment logics, Programmable Payments and Programmable Money. Purpose-Bound Money (PBM), as the third and final model, combines the concepts and advantages of the previous two. Compared to these two models, PBM offers both the flexibility of programmable payments and the determinism of programmable money. In this new type of transferable token, the programming logic and the value of the token are closely linked to each other. Technically, PBM can be seen as wrapping programming rules around digital assets to create a new type of transferable token that includes the underlying rules and value tokens. Once the conditions are met, PBM will release its underlying assets.

The reference implementation of PBM is based on the ERC-1155 standard, while Ample FinTech adopted the ERC-3525 semi-fungible token standard to create PBM and named it PBM3525, where “3525” indicates the use of this advanced token standard. PBM3525 extends the “Purpose-Bound Money” technology, allowing users to independently combine and create complex payment programming logic with simpler, more composable and richer display capabilities. With these capabilities, PBM3525 is more conducive to commoditizing programmable money technology and its applications in various industries.

David LEE Kuo Chuen, Co-Founder of Ample FinTech, said: “PBM3525 is a game-changing innovation in programmable finance. The global financial industry is recognizing the significant opportunities that distributed ledger technology (DLT) and smart contracts offer to transform payments and digital finance. Ample FinTech is honored to collaborate with the public sector on pioneering projects such as Project DESFT and is pleased to have successfully validated the concepts and conducted cross-border payments using PBM3525 technology in this project. This achievement is just the beginning. As a versatile and powerful technology, PBM3525 has the potential to revolutionize numerous applications from digital finance to international trade.”

Zhexin Wan, Head of Research at Ample FinTech, is working on the next version of PBM3525, which focuses on privacy protection and compliance. He added: “PBM3525 represents a breakthrough in the way digital payments are conceived and used. By integrating digital identity and verifiable credential technologies, PBM3525 may be one of the first programmable DLT-based payment solutions that offers robust privacy protection and compliance features, which are essential for real-world applications. We see great potential, including scenarios such as cross-border payments, international trade, trade finance, contractual agreements and e-commerce, where it can help reduce counterparty risks and costs and improve efficiency and transparency.”

This innovation marks a milestone in the journey towards digitizing economies, cross-border payments and international trade. This technological innovation means that in the future, both businesses and individuals will be able to use cutting-edge programmable payment technologies such as PBM3525 without the need for expensive intermediary services. PBM3525 brings significant efficiency improvements through its atomic settlement function, addressing pain points in traditional cross-border payments such as long settlement times. It also simplifies international trade procedures and leverages its transparency to reduce compliance costs, bringing greater certainty and credibility to international trade. Ultimately, it enhances global financial inclusiveness and opens up new opportunities for economic growth and global cooperation.

The successful implementation of PBM3525 demonstrates the potential of blockchain technology to transform the financial sector, promoting the development of a more inclusive and interconnected global economy.

ZheXin Wan (Luigi)
E-mail: [email protected]
Italian: https://amplefintech.com/

About Ample FinTech: Ample FinTech is a Singapore-based financial technology solutions developer engaged in multiple tokenization and digital currency exploration initiatives, including the DESFT project, supported by the Monetary Authority of Singapore and the Bank of Ghana.

SOURCE: Broad FinTech

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