MAS and SGX in Singapore pilot settlement of blockchain-based assets

Singapore, SINGAPORE – The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) have perfected Delivery versus Payment (DvP) capabilities for the speedy settlement of tokenised assets using blockchain technology. The intention is that its application will shorten settlement cycles after trades are conducted.

Tech company Anquan, along with Deloitte and Nasdaq were roped in to complete the DvP prototypes and concluded that simultaneous exchange and final settlement on different blockchain platforms were possible using smart contracts, thereby enhancing operational efficiency and minimising settlement risk. Interledger interoperability and protection for investors are likewise possible.

“Blockchain technology and asset tokenisation are fuelling a new wave of innovation globally,” says Sopnendu Mohanty, Chief FinTech Officer at MAS. “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, gleamed from this project, can potentially be applied to a broad spectrum of the economy, creating a whole new world of opportunities.”

Echoing these sentiments, Tinku Gupta, Head of Technology at SGX 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.” Its deployment will require field testing before implementation on a larger scale.