MAS and SGX develop DvP capabilities
12 November 2018 Singapore
Image: Shutterstock
The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) have developed delivery versus payment (DvP) capabilities for the settlement of tokenised assets across different blockchain platforms.
DvP prototypes, which were developed with technology partners Anquan, Deloitte and Nasdaq, will help simplify post-trade processes and further shorten settlement cycles, MAS revealed.
According to MAS, the DvP prototypes have 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 ability to perform these activities simultaneously improves operational efficiency and reduces settlement risk.
Meanwhile, the collaboration also demonstrated that DvP settlement finality, interledger interoperability, and investor protection can be achieved through specific solutions designed and built on blockchain technology.
Sopnendu Mohanty, chief fintech officer, MAS, commented: “Blockchain technology and asset tokenisation are fuelling a new wave of innovation globally.”
“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.”
“The concept of asset tokensation, 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.”
Tinku Gupta, head of technology at SGX and project chair, added: “We are delighted to drive this important industry effort to accelerate innovation in the marketplace. 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.”
DvP prototypes, which were developed with technology partners Anquan, Deloitte and Nasdaq, will help simplify post-trade processes and further shorten settlement cycles, MAS revealed.
According to MAS, the DvP prototypes have 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 ability to perform these activities simultaneously improves operational efficiency and reduces settlement risk.
Meanwhile, the collaboration also demonstrated that DvP settlement finality, interledger interoperability, and investor protection can be achieved through specific solutions designed and built on blockchain technology.
Sopnendu Mohanty, chief fintech officer, MAS, commented: “Blockchain technology and asset tokenisation are fuelling a new wave of innovation globally.”
“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.”
“The concept of asset tokensation, 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.”
Tinku Gupta, head of technology at SGX and project chair, added: “We are delighted to drive this important industry effort to accelerate innovation in the marketplace. 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.”
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