Singapore continues to further develop the blockchain industry, this time with an eye on digitalizing the end-to-end process for wealth management products.
HSBC, UOB and Markenode – a digital markets operator and joint venture between SGX and Temasek – have announced an agreement to pilot the full digital issuance of wealth management products via distributed ledger technology (DLT), according to a statement.
Currently paper-based, the asset tokenization pilot – named «Project Guardian» and led by the Monetary Authority of Singapore – aims to fully digitalize the end-to-end value chain from issuance, securitization and distribution to asset servicing of products such as structured notes or actively managed certificates (AMC).
Efficiency Boost
According to the statement, the pilot could potentially help half the time required to manufacture and distribute products and funds. It could also lower issuance and servicing costs as well as enhance product accessibility and transparency in the city-state’s S$5.4 trillion ($3.8 trillion) asset management industry.
«With asset tokenization, customers will find it easier to create structured products with the bank and enjoy an improved process,» said UOB head of blockchain and digital assets Leong Yung Chee.
