Singapore Stock Exchange to Adopt Blockchain Technology
August 25, 2018 11:51 am
Blockchain Technology has been gaining attention from industry giants. Companies like IBM, Microsoft, Google have been working on their own blockchain for their customers. As previously reported, even several governments are supporting companies to expand blockchain tech in the country. (for example the U.K. government)
Singapore’s Stock Exchange (SGX) and The Monetary Authority of Singapore (MAS) are working together. The initiative aims to use blockchain technology for improving the efficiency of securities settlements.
The Singapore Exchange (SGX) announced that the initiative aims to scale up the country’s Delivery versus Payment (DvP) ability. Through this, it can be able to automate transactions via blockchain-based smart contracts. DvP is a settlement process which makes sure that the assets are transacted only when corresponding payments are received.
According to the announcement, the lending technological support features popular company such as Deloitte, Nasdaq and Aquan, a blockchain startup.
Developing a distributed network is the topmost priority. The investors and financial institutions can transact securities which can be converted into crypto tokens through different blockchain platforms.
The announcement also stated that the technology would be developed based on the open source code. This source code depends on the latest development Project Ubin. This project was initiated by MAS to settle interbank transactions through the Distributed Ledger Technology (DLT).
Tinku Gupta, Project Chair and Head of Technology, SGX shared his thoughts on the project that they are working on. He stated that the initiative would deploy blockchain tech for efficiency link-up funds transfer. The initiative would also remove both buyers’ and sellers’ risk in the DvP process.
There are other securities trading platforms such as SGX that has adopted blockchain technology for faster security settlements.