SGX and MAS Successfully Implement Blockchain
The SGX (Singapore Exchange Limited) and MAS (Monetary Authority of Singapore) successfully tested the implementation of Blockchain for the settlement of tokenized assets.
Testing the New Blockchain
According to a report released on November 11 by the SGX, the data related to the trial had been initiated in August, a little after the exchange and MAS had partnered with the American stock exchange Nasdaq, one of the “big four” consulting firms Deloitte and the home-based Anquan.
The organizations had together developed a Blockchain technology based solution for DvP (Delivery-versus-Payment) procedures. DvP is a settlement method in which the buyer need to pay for securities only at the time of delivery.
Now, with this trial, it is clear that corporate investors and financial institutions can carry out the exchange as well as the final settlement of tokenized assets on multiple Blockchain platforms at the same time.
According to SGX, this test could lead to the increase in operation efficiencies as well as reduce the risks inherent in settlements. Over and above that, the use of Blockchain technology could help automate DvP settlements even further with the use of smart contracts.
The Chief Fintech Officer at MAS, Supendu Monhanly stated that Blockchain as well as asset tokenization were creating a new wave of innovation across the globe. He stated that this project has proved that there is value in Blockchain and that it will bring benefits to the financial world in the short to mid-term.
SGX’s Head of Technology, Tinku Gupta also announced that the exchange had filed its first ever technology patent. Gupta stated that the filing was based on how the exchange was able to develop the real-world interoperability of platforms using very unique methodologies.
Active Testing of Blockchain Solutions in Singapore
Singapore based companies have now frequently been in the news as active testing of Blockchain based solutions are on the rise in this island nation.
For example, in July this year, CrimsonLogic, a local state-owned service provider, unveiled its cross-border Blockchain network focused on global trade. This platform was created to increase the efficiencies of trade between the ASEAN (Association of Southeast Asian Nations) and China.
Then, last month in October, SP Group, a major provider of electricity and gas transmission in the city, launched a Blockchain technology based renewable energy certificate marketplace where users from across the globe could buy and sell solar energy.