In recent regulatory news, Singapore Exchange and the Monetary Authority of Singapore have partnered with Anquan, Deloitte, and Nasdaq to settle tokenized securities using distributed ledger technology.
The Monetary Authority of Singapore (MAS) and Singapore Exchange have announced a partnership that will “allow financial institutions and corporate investors to carry out simultaneous exchange and final settlement of tokenized digital currencies and securities assets.” The venture is intended to “improv[e] operational efficiency and reducing settlement risks.”
Major financial companies Anquan, Deloitte, and Nasdaq have been appointed as “technology partners” for the project. The project is expected to deliver a report examining “the potential of automating [Delivery versus Payment (DvP)] settlement processes with Smart Contracts and identify key design considerations to ensure resilient operations and enhanced protection for investors” by November.
The head of technology at Singapore Exchange and chair of the project, Tinku Gupta, stated:
“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.”
Sopnendu Mohanty, the chief fintech officer of MAS, said:
“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. 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.”