MAS, SGX, three other partners build a blockchain solution for code assets

Singapore's central bank and Singapore Exchange announced a partnership to develop the delivery and payment functions for the settlement of resources with tokens.

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The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) will collaborate with Nasdaq, a professional services company Deloitte and Anquan, to develop the functions of delivery against payment (DvP) for liquidation of resources with tokens on various blockchain platforms, MAS announced on Friday. The parties involved said the new feature would enable financial institutions and investors to simultaneously trade and settle for tokenised digital currencies and securities assets, thereby increasing efficiency and reducing risks.

The move is part of the vast project supported by the MAS called Project Ubin which aims to exploit the blockchain for various use cases focused mainly on payments and settlement of securities. During the current phase of the project, Nasdaq, Deloitte and Anquan will apply the software technology built and presented in Phase 2 of the Ubin Project, launched in November 2016.

Once the project is finished, the share with a report by November of this year. The document will address the automation potential of DvP settlements by exploiting smart contracts.

Tinku Gupta, who leads the SGX technology unit and manages the current project, commented:

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

" This is a collaborative innovation that brings together more actors to pursue real opportunities that will benefit the ecosystem, "he added.

The chief officer of Fintech, head of MAS, Sopnendu Mohanty, noted:

"Blockchain technology is radically transforming the way financial transactions are performed today and the ability to transactively transact through blockchain will open a world of new business opportunities. "

"The involvement of three important technology partners emphasizes the commercial interest in making this reality," said Mohanty.

Last year, Mohanty revealed that the Ubin Project, which is divided into five phases and expected to be completed by the end of this year, would culminate with a digital coin issued by the state.

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