Singapore Exchange Pilots Blockchain for Tokenized Assets Settlement

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Singapore Exchange Limited (SGX), alongside with the Monetary Authority of Singapore (MAS), successfully trials the use of blockchain tech for tokenized assets settlement, as per SGX release issued on 11th Nov.

The report unveils the data on the pilot trial that started in August, shortly after SGX and MAS  had collaborated with Nasdaq, ‘big four’ Singaporean tech company Anquan, and consulting company Deloitte. As per the release, the associates have developed a blockchain-driven solution for Delivery versus Payments (DvP) abilities — a settlement system where the customer’s payment for securities is due at the time of delivery.

The test has explained that corporate investors and financial institutions can carry out tokenized assets in the different blockchain platforms simultaneously SGX thinks that this could enhance operational efficiency and decrease settlement risks. However, the technology could further help automate DvP settlement process by implementing smart contracts.

Head of Technology SGX, Tinku Gupta, further revealed that the exchange has filed its first-ever patent:

“Based on the unique methodology that SGX formed to allow real-world interoperability of platforms, and the simultaneous exchange of digital tokens and securities, we have applied for our first-ever technology patent.”

As previously reported, Singapore-based companies are actively experimenting with the blockchain technology in different areas.

In July, local government-owned service provider CrimsonLogic revealed its cross-border blockchain network for global trade to increase the efficiency of trade corridors between China and the Association of Southeast Asian Nations (ASEAN) nations. In October, a major corporation providing gas and electricity transmission in Singapore, SP Group, started a blockchain powered renewable energy certificate marketplace to buy and sell solar energy worldwide.

In late October, Nasdaq won a U.S. patent for a smart-contract based information release system, which would enable to keep data safe before the issue. The stock market is awaiting decision for other blockchain-related patents as well.