General Announcement::MAS and SGX successfully leverage blockchain technology for settlement of tokenised assets
Issuer & Securities
Issuer/ ManagerSINGAPORE EXCHANGE LIMITED
SecuritiesSINGAPORE EXCHANGE LIMITED - SG1J26887955 - S68
Stapled SecurityNo
Announcement Details
Announcement Title General Announcement
Date & Time of Broadcast11-Nov-2018 17:06:01
StatusNew
Announcement Sub TitleMAS and SGX successfully leverage blockchain technology for settlement of tokenised assets
Announcement ReferenceSG181111OTHR13UJ
Submitted By (Co./ Ind. Name)Yee Kai Pin
DesignationVice President
Effective Date and Time of the event16/11/2018 17:00:00
Description (Please provide a detailed description of the event in the box below)The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) have successfully developed Delivery versus Payment (DvP) capabilities for the settlement of tokenised assets across different blockchain platforms. This will help simplify post-trade processes and further shorten settlement cycles.

2 The DvP prototypes, developed with technology partners Anquan, Deloitte and Nasdaq, demonstrated that financial institutions and corporate investors are able to carry out the simultaneous exchange and final settlement of tokenised digital currencies and securities assets on different blockchain platforms. The ability to perform these activities simultaneously improves operational efficiency and reduces settlement risks.

3 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 comprehensive view of automating DvP settlement processes with Smart Contracts . The report 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.

4 Mr Sopnendu Mohanty, Chief FinTech Officer, MAS, said, "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."

5 Ms Tinku Gupta, Head of Technology at SGX and Project Chair, said, "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."
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