Singapore Exchange Partners With Nasdaq and Deloitte For Blockchain Settlement Use
The Central Bank of Singapore has recently announced a deal with multiple big names of the industry to use the blockchain technology to improve the settlements using digital assets with the blockchain technology. This is part of the “Project Ubin”, a blockchain integration project that includes the Monetary Authority Singapore, the Singapore Exchange, along with Anquan, Deloitte and Nasdaq.
This partnership between the entities will let the Singapore Exchange (SGX) collaborate to create a Delivery versus Payment (DvP) system which will be used to automate the transactions made on the exchange using the blockchain technology and smart contracts.
DvP is a type of settlement process that is able to ensure that the assets are only transferred when the corresponding payment is received by the one who sent the first payment. The technology will be made by all the companies involved in the partnership with the SGX. The DvP will create the capabilities to settle tokenized assets across different platforms on the blockchain.
The companies will use an open source code that will be a derivative from the Project Ubin, made by the MAS in 2016 to test out interbank transactions with the blockchain technology.
According to Tinku Gupta, head of technology at the SGX, this is a collaborative effort to bring together multiple players that will benefit the whole system. This can completely eliminate the risk of the transactions and, this way, make the investors safer. The release of the company states that a new report will be issued in November about the updates of the initiative.
As MAS continues to make important steps in the cryptocurrency and blockchain area in Singapore, it is cautiously optimistic that the project Ubin will be successful. According to officers from the company, the MAS expects to see real impacts in 2020 only.
At the moment, the Australia Securities Exchange is also on the move to replace its systems by the blockchain technology and also expects to roll out its system in 2020.