Following successful testing of DLT-based securities issues, SGX formed a dedicated company with investment firm Temasek to extend and expand the use of the technology throughout the Exchange’s trading system.
Singapore Stock Exchange doubles investment in BlockchainNOTÍCIAS
The use of distributed registration technology can bring efficiency to many aspects of the life cycle of financial products, from listing and issuing to settlement of trades.
Singapore Exchange, or SGX, has announced a joint venture with investment firm Temasek to use DLT to streamline the issuance and trading of financial products listed on its platform.
According to a Friday report from Nikkei Asia, these will initially be considered sustainable securities, funds and financial products and may be extended in the future to cover other asset classes such as equities.
SGX has previously collaborated with Temasek and banking giant HSBC on a test using blockchain technology to issue fixed-income securities. The first results of this test came in September 2020 with a US$300 million bond issue for local food and agribusiness company Olam International.
This was followed by a further three fixed-income bonds issued through the system, totaling more than $1 billion Singapore (US$750 million) in value.
Today’s announcement formalizes the partnership in the creation of a limited society, while extending and expanding the scope of the previous test. Lee Beng Hong – head of fixed income, currencies and commodities at SGX – commented on the venture:
„We are very excited to take our digital asset business to the next level in partnership with Temasek.
Translated with www.DeepL.com/Translator (free version)