MAS, SGX to Develop Cross-Platform DvP Settlement of Tokenised Assets

Nasdaq, Deloitte and Anquan appointed as technology partners to enable simultaneous exchange and settlement of tokenised digital currencies and securities assets using blockchain technology.

The MAS (Monetary Authority of Singapore) and SGX (Singapore Exchange) have announced a collaboration to enable DvP (delivery versus payment) capabilities for settlement of tokenised assets across different blockchain platforms.

DvP is a settlement procedure which ensures that securities are delivered only if the requisite payment is made.

The project seeks to enable financial institutions and corporate investors to carry out simultaneous exchange and final settlement of tokenised digital currencies and securities assets, improving operational efficiency and reducing settlement risks, the MAS and SGX said in a joint statement.

Anquan, Deloitte and Nasdaq have been appointed as technology partners for the project, leveraging on the open-source software developed and made publicly available in Singapore’s Project Ubin Phase 2, an industry collaboration launched in November 2016 to explore the use of distributed ledger technology (DLT) in clearing and settling payments and securities.

“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,” said MAS chief fintech officer Sopnendu Mohanty. “The involvement of three prominent technology partners highlights the commercial interest in making this a reality.”

The project will produce a report, to be released by November 2018, that examines the potential of automating DvP settlement processes with Smart Contracts and seeks to identify key design considerations to ensure resilient operations and enhanced protection for investors.

“This initiative will deploy blockchain technology to efficiently link up funds transfer and securities transfer, eliminating both buyers’ and sellers’ risk in the DvP process,” said SGX Head of Technology Tinku Gupta, who chairs the project. “This is a collaborative innovation bringing together multiple players to pursue real-world opportunities that will benefit the ecosystem.”

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