Singapore Exchange, MAS tap blockchain tech for settlement of tokenised assets

Singapore Exchange and the Monetary Authority of Singapore (MAS) have developed delivery versus payment (DvP) capabilities for the settlement of tokenised assets across different blockchain platforms.

The pair say that this will help simplify post-trade processes and shorten settlement cycles. The DvP prototypes were developed with technology partners Anquan, Deloitte and Nasdaq.

A report has been published focusing on automating DvP settlement processes with smart contracts. It also identifies key technology and operational considerations to ensure resilient operations, and defines a market framework that governs post-trade settlement processes such as arbitration.

Sopnendu Mohanty, Chief FinTech Officer, MAS, says: “Blockchain technology and asset tokenisation are fuelling a new wave of innovation globally. This project has demonstrated the value of blockchain technology and the benefits it can bring to the financial industry in the short to medium term. The concept of asset tokenisation, as well as other learnings gleaned from this project, can potentially be applied to a broad spectrum of the economy, creating a whole new world of opportunities.”

Tinku Gupta, Head of Technology at SGX and Project Chair, comments: “We are delighted to drive this important industry effort to accelerate innovation in the marketplace. Based on the unique methodology 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.”