Singapore Plans to Sell Tokenized Securities via Blockchain

Singapore plans to sell tokenized securities via Blockchain, as the Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) collaborate on the development of the Delivery versus Payment (DvP) platform.

28 August, AtoZ Markets Two authorities in Singapore, the Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) are reportedly looking into utilizing the Blockchain potential. The officials are planning to use Blockchain for the creation of a secure platform for selling tokenized securities. 

Singapore Plans to Sell Tokenized Securities via Blockchain

It is also known that MAS and SGX will be joined by the technology firm Anquan, consulting giant Deloitte and stock exchange operator Nasdaq. These companies will jointly work on the development of the Delivery versus Payment (DvP) platform for tokenized assets. According to the official press release, these assets include tokenized digital currencies and securities assets.

The DvP platform will be able to simultaneously transact the securities asset that is being traded with the funds being used to pay for it. Speaking differently, both the parties will simultaneously swap their money for assets via a smart contract network. The announcement also notes that the swap will be able to take place across different Blockchain platforms. 

The work will appear as a part of the Singapore’s current Blockchain initiative, called Project Ubin. 

Project Ubin and DvP Platform

The firms that are involved in the development of the project will analyse the Project Ubin’s existing protocols. They are set to determine how to leverage them for a DvP platform. The alliance of the firm is expected to release a report by November 2018 with the explanation of how it is better to launch the DvP platform.

MAS chief fintech officer Sopnendu Mohanty has explained in the statement:

“Blockchain technology is radically transforming how financial transactions are performed today, and the ability to transact seamlessly across blockchains will open up a world of new business opportunities. The involvement of three prominent technology partners highlights the commercial interest in making this a reality. We expect to see further growth in this space as FinTechs leverage on the strong pool of talent and expertise in Singapore to develop innovative blockchain applications and benefit from the new opportunities created.”

SGX head of technology Tinku Gupta has also noted that the platform will “eliminate both buyers’ and sellers’ risk in the DvP process.” He has added:

“This initiative will deploy blockchain technology to efficiently link up funds transfer and securities transfer, eliminating both buyers’ and sellers’ risk in the DvP process. This is a collaborative innovation bringing together multiple players to pursue real-world opportunities that will benefit the ecosystem.”

Singapore to Promote Blockchain in Southeast Asia

Earlier this April, AtoZ Markets reported that the government of Singapore has decided to take an active role in promoting Blockchain in Southeast Asia, according to the new commentary from the officials.

Singapore’s finance minister Heng Swee Keat has been speaking at the meeting of ASEAN (Association of Southeast Asian Nations) member finance ministers on April 6. He has addressed the existing initiative of Singapore’s active Blockchain development plans. “In particular, we will support digital innovations like FinTech. For example, the underlying Distributed Ledger Technology presents us with many opportunities for cheap and secure transactions. This can promote financial inclusion for underserved and underbanked segments in ASEAN.”

Mr. Heng’s remarks appeared at a time when Singapore was bidding to set a new trend in Blockchain-friendly management and oversight.

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