MAS and SGX successfully leverage blockchain technology for settlement of tokenised assets

MAS and SGX successfully leverage blockchain technology for settlement of tokenised assets

Cryptocurrency Blockchain

MAS and SGX successfully leverage blockchain technology for settlement of tokenised assets

The Monetary Authority of Singapore (MAS) and Singapore
Exchange (SGX) have successfully developed Delivery versus Payment (DvP)1
capabilities for
the settlement of tokenised assets across different blockchain platforms 2
. This will help
simplify post-trade processes and further shorten settlement cycles.

2 The DvP prototypes, developed with technology partners Anquan, Deloitte and
Nasdaq, demonstrated that financial institutions and corporate investors are able to carry out
the simultaneous exchange and final settlement of tokenised digital currencies and securities
assets on different blockchain platforms. The ability to perform these activities
simultaneously improves operational efficiency and reduces settlement risks.

3 The collaboration also demonstrated that DvP settlement finality, interledger
interoperability and investor protection can be achieved through specific solutions designed
and built on blockchain technology. Following its conclusion, MAS and SGX have jointly
published an industry report, which provides a comprehensive view of automating DvP
settlement processes with Smart Contracts3
. The report also identifies key technology and
operational considerations to ensure resilient operations, and defines a market framework

that governs post-trade settlement processes such as arbitration.
4 Mr Sopnendu Mohanty, Chief FinTech Officer, MAS, said, “Blockchain technology and
asset tokenisation are fuelling 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 to medium term. The concept of asset tokenisation, as well as other

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