Kuala Lumpur-based Bursa Malaysia, the country’s stock exchange, is working on a blockchain-enabled security borrowing and lending proof-of-concept (PoC). English-language local media Bernama reported on the developments on May 6.

Per the report, the initiative aims to develop greater transparency and address other challenges of borrowing and lending securities in Malaysia.

More precisely, the exchange’s CEO, Datuk Muhamad Umar Swift, reportedly said that the PoC should increase the efficiency, speed and capacity of the aforementioned services, which should consequently bring greater demand. Swift claims that the benefits of the PoC will not be limited to the customers of Bursa Malaysia:

“The collaboration also benefits the wider industry through new knowledge, insights and practical experience in harnessing digital innovation to support and drive the growth of the capital market.”

The news outlet claims that this is the first such initiative taking place in an Association of Southeast Asian Nations member state.

Lastly, the report specifies that the PoC has been developed in partnership with Hong Kong-based Forms Syntron Information, the stock exchange’s technology partner. The project will reportedly involve Affin Hwang Investment Bank Bhd, CIMB Investment Bank Bhd, Citibank Bhd, Retirement Fund Incorporated and Malacca Securities.

As Cointelegraph reported last week, the CEO of the London Stock Exchange, one of the world’s oldest stock exchanges, believes that blockchain could have a use in issuing securities and settlement.

In March, news broke that major Spanish stock market operator Bolsas y Mercados Españoles has completed its first blockchain pilot for electronic certificates of collateral pledges.