SINGAPORE – The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) will work with Anquan, Deloitte and Nasdaq to develop Delivery versus Payment (DvP) capabilities for the settlement of tokenised assets on different blockchain platforms, the parties from Singapore announced on Friday (August 24).
DvP is a settlement procedure whereby securities and payments are exchanged simultaneously to ensure that the securities are delivered if and only if the corresponding payment is made, while tokenised assets are those whose ownership rights have been converted into digital tokens that can be purchased and sold .
DvP capabilities for tokenised digital currencies and securities assets would improve operational efficiency and reduce settlement risks for financial institutions and corporate investors by enabling them to perform simultaneous exchange and final settlement for such assets. according to SGX and MAS in their joint declaration.
Technology partners Anquan, Deloitte and Nasdaq will use open-source software developed and publicly available in phase 2 of Project Ubin, a collaboration in the industry launched in November 2016 to explore the use of Distributed Ledger Technology (DLT) and settle payments and sureties.
At the end of the project, they will prepare a report by November 2018, which will explore the potential of automating DvP settlement processes with smart contracts and identify key design considerations to ensure resilient operations and improved investor protection.
"This initiative will use blockchain technology to efficiently link fund transfer and transfer of securities, eliminating the risk of both buyers and sellers in the DvP process," said Head of Technology at SGX and project chairman Tinku Gupta.
"This is an innovative collaboration where multiple players come together to pursue real opportunities that will benefit the ecosystem."
MAS & # 39; chief fintech officer Sopnendu Mohanty added: "Blockchain technology radically transforms how financial transactions are performed today and the ability to seamlessly trade across blockchains will open up a world of new business opportunities.
"The involvement of three prominent technology partners emphasizes the commercial interest in realizing this."