Singapore’s Central Bank Develops A Blockchain Settlement System

The official stock exchange in Singapore, the Singapore Exchange (SGX) has recently partnered with the country’s Monetary Authority of Singapore (MAS) in order to develop a settlement system for tokenized assets that can work in different blockchain applications.

The news spiraled in the latest crypto news and confirmed that the newly completed delivery versus payment (DvP) system uses smart contracts in order to simplify the post-trade process as well as shorten the settlement cycle.

Aside from this, the system will make it easier for financial institutions to carry out the simultaneous exchange and final settlement of tokenized digital currencies and securities – as required under the DvP system.

According to the official press release:

“The prototypes for the platform had demonstrated that financial institutions and investors are able to carry out the simultaneous exchange and final settlement of tokenised digital currencies and securities assets on different blockchain platforms.”

The new system will act as an extension of the Project Ubin which began as a collaborative project by MAS and Singapore’s financial service industry in order to explore the possibilities of blockchain technology for clearing and settlement of payments and securities.

As the head of technology at SGX Tinku Gupta said:

“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.”

SGX initially announced thep lan to work with MAS and others in order to utilize blockchain tech with the settlement system in August this year, saying that the group will examine Project Ubin and its existing protocols to determine how to leverage them for a DvP platform.