MAS and SGX team with Deloitte, Nasdaq on blockchain asset settlement

The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) have partnered  with Anquan, Deloitte and Nasdaq to harness blockchain technology for settlement of tokenised assets.

This will allow financial institutions and corporate investors to carry out simultaneous exchange and final settlement of tokenised digital currencies and securities assets, with the aim of improving operational efficiency and reducing settlement risks.

Anquan, Deloitte and Nasdaq have been appointed as technology partners for the initiative, part of the ongoing Project Ubin. They will produce a report that examines the potential of automating Delivery vs Payment (DvP) settlement processes with smart contracts and identify key design considerations to ensure resilient operations and enhanced protection for investors. The report will be released by November.

A whole new world

“Blockchain technology is radically transforming how financial transactions are performed today, and the ability to transact seamlessly across blockchains will open up a world of new business opportunities. The involvement of three prominent technology partners highlights the commercial interest in making this a reality,” says Sopnendu Mohanty, Chief FinTech Officer of MAS.

He adds: “We expect to see further growth in this space as FinTechs leverage on the strong pool of talent and expertise in Singapore to develop innovative blockchain applications and benefit from the new opportunities created.”

Tinku Gupta, Head of Technology at SGX, and Project Chair, comments: “This initiative will deploy blockchain technology to efficiently link up funds transfer and securities transfer, eliminating both buyers’ and sellers’ risk in the DvP process. This is a collaborative innovation bringing together multiple players to pursue real world opportunities that will benefit the ecosystem.”