Singapore Exchange aims for speedier settlements via blockchain

Singapore’s stock exchange is working with the Monetary Authority of Singapore (MAS) to utilise blockchain in an initiative to improve the efficiency of securities settlements.

The MAS is the city state’s de facto central bank

In a release the Singapore Exchange (SGX) said that the collaboration with MAS, the city state’s de facto central bank is aimed at scaling up its Delivery versus Payment (DvP) capacity so it is able to automate transactions via blockchain-based smart contracts.

DvP is a settlement process that ensures assets are transacted only when corresponding payments are received.

Project Ubin

Part of its ongoing Project Ubin iblockchain integration scheme which it has worked on since 2016, the MAS has also enlisted Deloitte, Nasdaq and blockchain start-up Anquan as technical partners to deliver the enhancements.

“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,” said Tinku Gupta, head of technology at SGX and project leader. “This is a collaborative innovation, bringing together multiple players to pursue real-world opportunities that will benefit the ecosystem.”

The end goal a distributed network that enables financial institutions and investors to transact securities converted into digital tokens through different blockchain platforms.A detailed report identifying and examining key design considerations will be released by November, according to the release.