Singapore Stock Exchange To Use Blockchain For Securities Settlements

Singapore's primary stock exchange has declared a working partnership with the nation's central bank to build up a blockchain platform for securities' settlements.

In a declaration on Friday, the Singapore Exchange (SGX) revealed the details of the new working partnership with the Monetary Authority of Singapore (MAS) – the nation's central bank – to improve Singapore's Delivery versus Payment (DvP) limit with automation powered by blockchain smart contracts.

The project will utilize and build upon the blockchain created by the central bank's own attempt to tokenize the Singaporean dollar into a digital money, as a part of its 'Project Ubin' activity.

Ultimately, the attempt sees the target of building up a DvP mechanism that empowers organizations to transact and settle securities – tokenized digitally – across various blockchain platforms while eliminating securities risks and enhancing operational efficiency.

The SGX stated that the joint venture "will allow financial institutions and corporate investors to carry out simultaneous exchange and final settlement of tokenized digital currencies and securities assets, improving operational efficiency and reducing settlement risks."

SGX head of innovation and project chair Tinku Gupta expressed:

"This initiative will deploy blockchain technology to efficiently link up funds transfer and securities transfer, eliminating both buyers’ and sellers’ risk in the DvP process."

A similar declaration by Singapore's central bank featured Stock Exchange giant Nasdaq, 'big four' accounting and services firm Deloitte and blockchain startup Anquan as the project's technology partners.

Sopnendu Mohanty, fintech boss at Singapore's national bank, was cited as expressing:

"Blockchain technology is radically transforming how financial transactions are performed today, and the ability to transact seamlessly across blockchains will open up a world of new business opportunities"

A proactive mover in exploring the Blockchain Technology, Singapore's Central bank has already issued digital tokens of the Singaporean dollar on a private Ethereum blockchain, a year ago during a Phase 1 trial of Project Ubin.

Image courtesy: Sgx.com

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