Singapore’s main stock market has declared a working partnership with the nation’s central bank to come up with a blockchain platform for securities’ settlements.
Within an statement on Friday, the Singapore Exchange (SGX) showed details of a new working partnership with the Monetary Authority of Singapore (MAS) — that the nation’s central bank — to improve Singapore’s Delivery versus Payment (DvP) capability with automation powered by blockchain smart contracts.
The project will utilize and build upon the blockchain developed by the central bank’s effort to tokenize the Singaporean dollar into an electronic money, a part of its’Project Ubin’ initiative.
In the end, the effort sees the aim of creating a DvP mechanism that allows institutions to innovate and settle securities — tokenized digitally — over distinct blockchain platforms while removing securities dangers and enhancing operational performance.
The joint-endeavor”enables financial institutions and corporate traders to perform simultaneous trade and final settlement of tokenized digital monies and securities resources, enhancing operational efficiency and reducing settlement risks,” that the SGX explained.
SGX head of technologies and job chair Tinku Gupta said:
"This initiative will set up blockchain technologies to effectively join capital transfer and securities move, eliminating both buyers' and sellers' danger in the DvP procedure."A similar statement from Singapore’s central bank emphasized inventory market giant Nasdaq,’big four’ accounting and solutions company Deloitte and blockchain startup Anquan since the initiative’s tech partners.
“Blockchain technologies is radically changing how monetary transactions are performed now, and the capacity to transact effortlessly across blockchains will start up a universe of new business opportunities,” Sopnendu Mohanty, fintech leader at Singapore’s central bank, has been quoted as saying.
A Licensed plumber in exploring blockchain technologies, Singapore’s central bank has issued electronic tokens of their Singaporean dollar to a personal Ethereum blockchain in a Phase 1 trial of Project Ubin this past year.
