Singapore Exchange and regulator in cross-DLT settlement breakthrough
The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) have developed delivery versus payment (DvP) capabilities for the settlement of tokenised assets across different blockchain platforms
As reported in August, the pair signed a collaboration to develop this DvP. Anquan, Deloitte and Nasdaq were appointed as technology partners for this project. It was one of two spin-offs from Project Ubin.
According to the duo, DvP will help simplify post-trade processes and further shorten settlement cycles.
Sopnendu Mohanty, chief fintech officer, MAS, says: “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, adds: “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.”
The pair state that the collaboration also demonstrated that DvP settlement finality, interledger interoperability and investor protection can be achieved through specific solutions designed and built on blockchain technology.
Following its conclusion, MAS and SGX have jointly published an industry report, which provides a view of automating DvP settlement processes with smart contracts.
In other news, today (13 November) MAS revealed it is launching a $5 billion private market programme to boost the region’s private equity and venture capital scene.
While yesterday, MAS released a set of principles as it seeks to promote fairness, ethics, accountability and transparency (FEAT) in the use of artificial intelligence (AI) and data analytics in finance.