MAS and SGX unfold blockchain technology for tokenised assets

It will simplify post-trade processes and shorten settlement cycles.

The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) built the Delivery versus Payment (DvP) capabilities for the settlement of tokenised assets across different blockchain platforms which will aid simplified post-trade processes and further shorten settlement cycles, an announcement revealed.

“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,” MAS chief fintech officer Sopnendu Mohanty said. “The concept of asset tokenisation, as well as other learnings gleaned from this project, can potentially be applied to a broad spectrum of the economy, creating a whole new world of opportunities.”

Developed with technology partners such as Anquan, Deloitte, and Nasdaq, the DvP prototypes 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 collaboration also shows 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 Contracts.

“We are delighted to drive this important industry effort to accelerate innovation in the marketplace,” SGX head of technology and project chair Tinku Gupta commented. “Based on the unique methodology SGX developed to enable real-world interoperability of platforms, as well as the simultaneous exchange of digital tokens and securities, we have applied for our first-ever technology patent.”