In the very near future, the tokenization of assets will be the next big topic of conversation, another innovative application of blockchain technology. Now, the Singapore Exchange (SGX), in collaboration with the Monetary Authority of Singapore (MAS), has successfully tested a settlement system for tokenized assets. Basically it is a blockchain-based Delivery-versus-Payment (DvB) settlement where the seller gets paid immediately upon the delivery of the asset (stocks, bonds, collectables, etc). The SGX is also developing how this blockchain technology can be spread among other platforms to vastly facilitate the speed and safety of a transaction. Once again, the adoption of new innovative applications of technology is happening in places like Singapore and offshore from U.S. soil.
(Bill Taylor/Fintek Capital)
"Singapore Exchange Limited (SGX), along with the Monetary Authority of Singapore (MAS), have successfully tested the use of blockchain technology for tokenized assets settlement, according to a SGX release issued Sunday, Nov. 11.
The report reveals the data on the trial that began in August, shortly after MAS and SGX had partnered with U.S. stock market Nasdaq, “big four” consulting company Deloitte, and Singaporean tech company Anquan. As per the release, the partners have developed a blockchain-driven solution for Delivery versus Payment (DvP) capabilities — a settlement procedure where the buyer's payment for securities is due at the time of delivery.
The trial has shown that financial institutions and corporate investors are able to carry out the exchange and final settlement of tokenized assets on different blockchain platforms simultaneously. SGX believes that this could increase operational efficiency and reduce settlement risks. Moreover, the technology could further help automate DvP settlement processes by using smart contracts, the report concludes..."