Singapore’s financial market regulator has teamed up with the city-state's stock exchange to create a trading platform for digital currencies on the basis of the blockchain software.
The Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) have decided to develop a delivery versus payment (DvP) platform for tokenized assets, including tokenized digital currencies and securities assets, according to a joint press release.
The two authorities are working with tech firm Anquan, consultant Deloitte and Nasdaq. The DvP platform will be able to simultaneously transact the securities asset being traded with the funds being used to pay for it, MAS and SGX also said. The swap of money for assets will take place across different blockchain platforms.
The development is part of Singapore’s blockchain initiative, dubbed Project Ubin.
Reducing Risks for Buyers and Sellers
«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,» said Sopnendu Mohanty, chief fintech officer at MAS. «The involvement of three prominent technology partners highlights the commercial interest in making this a reality.»
The initiative will use the blockchain to efficiently link up fund transfers and securities transfers, eliminating both buyers’ and sellers’ risks in the process, Tinku Gupta, head of technology at SGX and chair of the project, added.
