In a bid to improve the efficiency of securities settlements, recently, a blockchain info has been utilized by the Singapore’s stock exchange which is collaborating with the Monetary Authority of Singapore (MAS), the city-state’s de facto central bank.
The Singapore Exchange (SGX) stated in a release that the partnership is aimed at topping up the country’s Delivery versus Payment (DvP) volume, so that, it’s able to mechanize communications via blockchain-based smart contracts. DvP is a payment procedure that safeguards assets that are transacted only when consistent payments are received.
According to the announcement, the lending technological support is a list of well-known firms like Nasdaq-like professional services firm Deloitte and the blockchain startup Anquan. The aim is to improve a distributed network where monetary investors and institutions can do the transactions securities that have been changed into digital tokens through various blockchain platforms.
The partners of the companies stated that the blockchain info technology will be planned based on the open source code ensuing from the newest development of Project Ubin, the MAS initiated in 2016 test out settling interbank transactions through a distributed ledger technology. A detailed report classifying and probing key design considerations that will be released by November, according to the release.
Tinku Gupta, the project chair and SGX’s head of technology, stated that this initiative will organize a blockchain technology to professionally link up assets transfer and securities transfer, removing both purchasers and vendors who will be the risk in the DvP process.
As per the news published in Investopedia, the SGX will be using securities trading platform that will be turning into blockchain for possibly quicker securities settlements. Presently, the Australia Stock Exchange is also using blockchain info and touching towards a replacement for its current settlement system built with the blockchain startup Digital Asset Holdings that supposed to roll out in 2020.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]