Singapore Exchange Limited (SGX), together with the Singapore Monetary Authority (MAS), have successfully tested the use of blockchain technology for the regulation of tokenised resources, according to an SGX release published on Sunday 11 November.
The report reveals data on the trial started in August, shortly after MAS and SGX had partnered with the US stock market Nasdaq, the "big four" consulting firm Deloitte and Anquan, a technology company in Singapore. Depending on the version, partners have developed a blockchain-based solution for Delivery against Payment (DvP) – a payment process in which the payment of the buyer for the securities is due at the time of delivery.
The process has shown that financial institutions and corporate investors are able to simultaneously perform the exchange and final liquidation of the symbolized resources on different blockchain platforms. SGX believes this could increase operational efficiency and reduce settlement risks. In addition, the technology could further help automate DvP settlement processes using smart contracts, the report concludes.
Tinku Gupta, head of SGX technology, also revealed that the exchange has filed its first ever patent:
"Based on the unique methodology developed by SGX to enable real-time platform interoperability, as well as the simultaneous exchange of tokens and digital titles, we asked for our first technology patent."
As often reported by Cointelegraph, Singapore-based companies are actively testing blockchain solutions in different areas.
For example, in July, the local-owned service provider CrimsonLogic unveiled its cross-border blockchain network for global trade in order to increase the efficiency of the trade corridors between China and the association nations. Southeast Asian Nations (ASEAN). And in October, an important company that supplied electricity and gas to Singapore, SP Group, launched a blockchain-based renewable energy certificate market to buy and sell solar energy worldwide.
At the end of October, Nasdaq also won a US patent for a smart-contract-based information release system that would keep data safe before release. The stock market is awaiting decisions also for other patents related to the blockchain.