Singapore Central Bank Unveils Blockchain Platform ForTokenized Asset Settlement
Singapore has moved a step closer to using blockchain technology in the financial markets. The country’s de-facto central bank and the Singapore Exchange Limited have completed trials on a blockchain solution for tokenized assets settlement.
SGX-MAS Blockchain Solution
The trials began as early as August when the two announced a partnership with the NASDAQ. The two have since confirmed the development of blockchain solution for Delivery versus Payment Capabilities.
Trial results indicate that the blockchain solution is more than capable of allowing financial institutions and investors to carry out exchange and settlement of tokenized assets. The whole process will take place on a blockchain platform.
According to the Monetary Authority of Singapore, the new platform has the potential to increase operational efficiency on sentiments. The solutions should also help reduce settlement risks. The long-term plan, however, is to automate the DvP settlement process with the help of smart contracts.
“Based on the unique methodology that SGX developed to enable real-world interoperability of platforms, as well as the simultaneous exchange of digital tokens and securities, we have applied for our first-ever technology patent,” said Tinker Gupta Head of Technology at SGX.
According to Chief Fitch Officer at MAS, Mr. Sopnendu Mohanty, blockchain has the potential to fuel the next wave of innovation. The completed project according to the executive demonstrated the actual value of the ledger technology. The concept of tokenization should thus find its way into a broad spectrum of the economy, which should result in a new world of opportunities.
Singapore Blockchain Focus
The unveiling of the blockchain solution for assets tokenization attests to Singapore’s edge on blockchain innovation. A number of companies in the island nation are increasingly exploring the technology. Some have already started carrying out tests on blockchain solutions in different areas.
Local government-owned service provider CrimsonLogic has already unveiled a cross-border blockchain network. The solution seeks to boost cross-border trade between China and ASEAN nations. Electricity and gas transmission company SP Group has also unveiled a blockchain platform that acts as a marketplace for buying and selling solar energy.
Singapore is increasingly becoming a hub for blockchain development and innovations. Swiss-based venture capital firm Blockchain Valley Ventures has already opened a regional office in the island nation. The regional office should become operational early next year. The headquarters will seek to bridge the gap between European and Asian investors focused on emerging technologies such as blockchain.