Singapore Exchange Limited (SGX) and the Monetary Authority of Singapore (MAS) are using blockchain for tokenized asset settlement. SGX’s statement on Sunday, Nov. 11 analyzes the trial period data from August 2018 to the present. The other trial partners joining SGX and MAS on their mission are consulting company Deloitte and Singapore tech company Anquan.
The four joined forces to develop a blockchain solution for Delivery versus Payment (DvP). DvP is a settlement procedure where the buyer’s payment for securities is due at the time of delivery. SGX and MAS wanted to use blockchain to allow for the trade of tokenized assets across multiple blockchain platforms.
This makes it possible for financial institutions and big investors settle tokenized assets on different blockchain platforms at the same time. This can help to reduce settlement risks and encourage more use.
MAS and SGX have published a joint report on the DvP settlement using smart contract technology on the blockchain. The DvP settlement process can become more automated and efficient thanks to these on chain contracts.
SGX has filed its first-ever patent to secure their innovation for real-world interoperability of platforms in addition to the simultaneous exchange of digital tokens and securities. Singapore remains a blockchain innovation focused country with a global vision for deploying web 3.0 solutions.