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Singapore Exchange Uses Blockchain Technology for Settlement of Tokenized Assets

Based on a release made on Nov, 11, by Singapore Exchange Limited (SGX), tokenized assets have been successfully verified using Blockchain technology. The organization made this possible by partnering with the Monetary Authority of Singapore (MAS). The later is Singapore’s central bank as well as its financial regulatory authority.

Delivery versus Payment; Developed to Provide Faster Transactions

It was mentioned that the development of a Delivery versus Payment (DvP) capabilities was successful. As such, this will aid in settlement of tokenized assets on the Blockchain platform. As a result, post-trade processes will be easier, and even settlement cycles will take less time.
In the same vein, prototypes of the DVP which were used during the testing phase. This showed that corporate bodies, as well as individuals, will be able to transact tokenized digital assets. They will also do this simultaneously on different blockchain platforms. Therefore, with the buyer’s payment arriving at the same time, this may reduce some of the settlement risks that are usually associated.

Singapore Exchange Limited (SGX) First-Ever Patent

The report quoted the Head of Technology, Ms. Tinku Gupta stating that the company has just gotten its first patent. In Ms. Tinku Gupta’s own words;

We are delighted to drive this important industry 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 out firt-ever technology patent.

Additionally, Mr. Sopnendu Mohanty, Chief Fintech Officer, MAS said:

Blockchain technology and asset tokenization are fueling 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 meduim trem. The concept of assest tokenization, as well as other learnings gleaned from this project, can potentially be applied to broad spectrum of the economy, creating a whole new world of oppurtunities

Other Organizations Fostering the Growth of Blockchain Technolgy

Deducing from this announcement, it appears that more companies are willing to create Blockchain solutions in Singapore. An instance is CrimsonLogic, a local service provider that launched a Blockchain network that will enhance the trade between the c nations and China.
The same is the case for Nasdaq, an American stock exchange which was awarded a US patent for its new system which is based on smart contract information.
 

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