Singapore's primary stock exchange announced an operational partnership with the country's central bank to develop a blockchain platform for securities settlements.
In a Friday announcement, the Singapore Exchange (SGX) revealed details of a new operational partnership with the Monetary Authority of Singapore (MAS) – the central bank of the country – to enhance delivery capacity against payment (DvP) of Singapore with automation based on smart blockchain contracts.
The project will use and build on the blockchain developed by the central bank's effort to transform the Singapore dollar into digital currency, part of its "Project Ubin" initiative.
Ultimately, the effort sees the goal of developing a DvP mechanism that allows institutions to trade and regulate securities – digitally tokenised – across several blockchain platforms while eliminating risk and impact on securities itinerant operating efficiency.
The joint effort "will allow financial institutions and corporate investors to carry out the simultaneous exchange and final settlement of digital currencies and tokenised securities, improving operational efficiency and reducing settlement risks," he said. SGX.  The head of technology and SGX Tinku Gupta project president said:
"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. "
A similar announcement from the central bank of Singapore highlighted the giant of the Nasdaq stock exchange, the four major accounting and service companies Deloitte and the blockchain startup Anquan as technology partners of the initiative.
"Blockchain technology is radically transforming the way financial transactions are performed today and the ability to transact transactions transparently through blockchain will open up a world of new business opportunities," said Sopnendu Mohanty, chief fintech at the central bank of Singapore.
A proactive engine in blockchain technology research, the Singapore central bank has already issued Singapore dollar digital tokens on a private Ethereum blockchain during a phase 1 trial of the Ubin Project last year
Image highlighted by Shutterstock.
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