MAS, SGX leverage blockchain tech for tokenised assets settlement
The Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) have successfully developed Delivery versus Payment (DvP) capabilities to settle tokenised assets across different blockchain platforms.
“This will help simplify post-trade processes and further shorten settlement cycles,” according to a joint statement on Sunday (11 November). DvP is a settlement procedure wherein securities and monies are simultaneously exchanged so that delivery of securities takes place only if payment is made.
Developed together with technology partners Anquan Capital, Deloitte and Nasdaq, the DvP prototypes have shown that financial institutions and corporate investors are able to carry out the exchange and final settlement of tokenised digital currencies and securities assets simultaneously on different blockchain platforms.
MAS and SGX have also jointly published an industry report, which details automating DvP settlement processes via Smart Contracts. Smart Contracts are self-executing contracts where the terms are coded into software and are executed when certain conditions are fulfilled.
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