Singapore Exchange Limited, along with the Monetary Authority of Singapore, have successfully tested the use of Blockchain technology for tokenized assets settlement

Bitcoin’s underlying technology, blockchain is exponentially rising across the world. As such, Singapore based Exchange, Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) is successfully leveraging the blockchain technology. The goal is to enable trading of tokenized assets across multiple blockchain platforms.

Trade tokenized assets across multiple blockchain platforms

Report in brief:

  • MAS and SGX successfully developed DvP for tokenized assets
  • DvP developed with major technology partners; Deloitte, Nasdaq, and Anquan
  • A joint report on DvP settlement was published by MAS and SGX with smart contract

As per the report, MAS and SGX will facilitate Delivery versus payment (DVP) for cross successful settlement of digital securities. Consequently, securities will be bought and sold via smart contract over numerous platforms based on blockchain technology. Moreover, it allows Fintech and corporate investors to successfully end up on simultaneous exchange and settlement. The firms believe that the process would reduce settlement risk whilst increasing operational efficiency.

As a support, Anquan, Deloitte, and Nasdaq appeared as the technology partner to appreciate DvPs capabilities.
Sopendu Monhanly, MAS chief fintech officer stated that;

Blockchain technology and asset tokenisation are fuelling a new wave of innovation globally. This project has demonstrated the value of blockchain technology and the benefits it can bring to the financial industry in the short to medium term. The concept of asset tokenisation, as well as other learnings gleaned from this project, can potentially be applied to a broad spectrum of the economy, creating a whole new world of opportunities.”

On the other hand, Ms. Tinku Gupta, Head of Technology at SGX and Project Chair appreciated the initiative, said in a statement,

“We are delighted to drive this important industry effort to accelerate innovation in the marketplace. Based on the unique methodology SGX developed to enable real-world interoperability of platforms, as well as the simultaneous exchange of digital tokens and securities, we have applied for our first-ever technology patent.”

Technically, DvP is a process wherein the buyer gets money as security beforehand the asset is released. MAS and SGX’s step to leverage blockchain is to ensure DvP becomes more secure and efficient.

Also read: South Korea’s crypto exchange Zeniex will soon terminate its services due to a recent government crackdown on unauthorized platforms