This week, D3 Labs had the opportunity to share valuable insights during a collaborative event with Quarix titled “Leap with On-chain Real Money and Real Identity.” Chung Ying Lai, co-CEO of D3 Labs, was invited as one of the panelists to discuss strategic key topics, including real money integration, regulatory and compliance frameworks, and partnerships for financial innovation. D3 Labs provided insights on accelerating the development of fiat-backed token ecosystems and digital identity solutions for cross-border transactions in emerging markets such as Indonesia, Asia, and Europe.

Indonesia’s Payment System Blueprint 2030

Central Bank of Indonesia (BI)  has officially unveiled the Indonesia Payment System Blueprint 2030, marking a significant milestone in shaping the future of the nation’s payment system architecture. This strategic initiative positions Indonesia at the forefront of global financial innovation, aligning with efforts by other countries to explore Central Bank Digital Currencies (CBDC). The Payment System Blueprint (PSB) vision is structured around the 4I-RD framework: Industry, Infrastructure, Innovation, International, and Rupiah Digital. The development of Digital Rupiah will focus on advanced experimentation, emphasizing replicating wholesale market functions and deepening financial markets. The current development phase has completed the Proof of Concept for the Cash Ledger, which includes the implementation of w-Digital Rupiah covering issuance, redemption, and interbank fund transfers. The next stages will involve the use case for w-Digital Rupiah, followed by the development of programmability, composability, and tokenization features.

Global Banks Are Preparing for Cross-border Transactions 

Global financial institutions are increasingly adopting DLT by collaborating with startups to drive innovation, efficiency and compliance in the financial sector. The Global Banks are building and exploring on tokenization to various use cases in blockchain-based. The objective is to achieve real-time and compliant cross-border payment, to open more global capital markets through asset tokenizations and the leveraged business process through Asset management.

HSBC : Project Ensemble

HSBC ran three Proofs of Concept (POCs) as part of the Sandbox setup. One for a purchase of digital bonds on the HSBC Orion platform using tokenized deposits recorded on the HSBC ledger. Another was the interbank transfer of tokenized deposits with Hang Seng Bank, using the Ensemble interoperability platform. And the third was the use of tokenized deposits for settlement of electronic bills of lading.

JP Morgan : JPM Coin Systems

It records balances and balance updates on the blockchain. The payment execution, such as linking to other JP Morgan systems or compliance processes, is performed off chain.

Citi Token Services 

Citibank has pilot for tokenized deposits, enabling organizations to move money between Citi branches worldwide and 24/7. The other is a trade solution that provides smart contract based bank guarantees

D3 Labs initiates Cross-border Use Cases Between Indonesia and Thailand

Recently, D3 Labs pioneered the collaboration between one of the biggest bank in Kasikorn Bank – Thailand to build cross-border transaction ecosystem through each blockchain payment system. The objective is to leverage Programmable Money & Purpose Bound Money (PBM) to enhance financial inclusion and efficiency in cross-border transactions and tourist voucher systems. 

The key objectives are:

1. Streamline Cross-Border Transactions: Implementation of Programmable Money enables cross-border payments & remittances between Thailand and Indonesia faster, cheaper, and more efficient.
2. Create an Innovate Voucher System: Develop a tourist voucher system using PBM to allow a seamless retail payment system.
3. Ensure Regulatory Compliance: Create a compliant PBM system that meets the regulatory requirements of Thailand for domestic payment.
4. Enhance Bilateral Cooperation: Strengthen economic ties and foster fintech innovation through collaborative efforts between Thailand and Indonesia.
5. Drive Technological Advancement: Encourage the adoption of advanced blockchain and digital financial technologies in both countries.

By achieving these objectives, the collaboration seeks to demonstrate the practical benefits of PBM technology, enhance economic ties between Thailand and Indonesia, and set a precedent for future fintech innovations in the region.