Singapore's central bank is working with the Singapore Exchange and three technology partners - Anquan, Deloitte and Nasdaq - to develop Delivery versus Payment (DvP) capabilities for settlement of tokenised assets across different blockchain platforms.
The collaborative effort marks the latest phase of Project Ubin, a Monetary Authority of Singapore-led initiative to see how DLT can be used for the clearing and settlement of payments and securities, specifically the use of a tokenised form of the Singapore dollar on a distributed ledger.
For this next step, the project participants will explore ways to enable financial institutions and corporate investors to carry out simultaneous exchange and final settlement of tokenised digital currencies and securities assets.
The technology partners will use the open-source software developed and made publicly available by MAS in November last year to examine the potential of automating DvP settlement processes with Smart Contracts.
Tinku Gupta, head of technology at SGX, and Project Chair, says: “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. This is a collaborative innovation bringing together multiple players to pursue real-world opportunities that will benefit the ecosystem.”