The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) are working together to develop delivery versus payment (DvP) capabilities for the settlement of tokenised assets across blockchain platforms.
According to MAS and SGX, this will allow financial institutions and corporate investors to carry out the simultaneous exchange and final settlement of tokenised digital currencies and securities assets, improving operational efficiency and reducing settlement risks.
MAS said that three companies—Anquan, Deloitte and Nasdaq—have been appointed as technology partners for the project which will produce a report on the potential of automating DvP settlement processes with smart contracts and identify key design considerations to ensure resilient operations and enhanced protection for investors.
MAS revealed that the report will be released by November this year.
Sopnendu Mohanty, MAS chief financial technology officer, noted that blockchain technology is radically transforming how financial transactions are performed today.
He said that the ability to transact seamlessly across blockchains will open up a world of new business opportunities.
Tinku Gupta, head of technology at SGX and project chair, said the initiative will bring together multiple players to pursue real-world opportunities that will benefit the ecosystem.
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