MAS and Singapore Exchange to jointly develop blockchain platform for securities settlement

The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) announced on Friday that the two would jointly collaborate to develop a settlement mechanism of tokenized assets across different platforms.

The new platform will allow financial institutions and corporate investors to carry out simultaneous exchange and final settlement of tokenized digital currencies and securities assets, according to a press released by the MAS.

MAS, SGX and three other partners, Deloitte, Nasdaq and Anquan, will leverage on the open-source software that was made publicly available under Project Ubin Phase 2, which is the codename for the MAS’ digital currency project.

Sopnendu Mohanty, chief fintech officer of MAS, said: “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.”

The latest collaboration amongst market infrastructure providers and other leading tech partners underscores the city state’s ambition to make blockchain applicable in commercial use-cases.

The new initiative will deploy blockchain technology to efficiently link up funds transfer and securities transfer, eliminating both buyers’ and sellers’ risk in the delivery-versus-payment process, said head of technology at SGX Tinku Gupta.

“This is a collaborative innovation bringing together multiple players to pursue real-world opportunities that will benefit the ecosystem,” he said.