The Monetary Authority of Singapore (MAS) is the central bank of the Asian city state and its authority on financial market regulation. In addition, the Singapore Exchange Ltd. exists. (SGX) as a local exchange for commodity futures and securities transactions. Together, both institutions have now developed a new automation method for the rapid settlement of transactions with tokenized assets. “Settlement” stands for the mutual fulfillment of certain transactions in the financial sector, which takes place step by step.
Both institutions recently announced this new development in a joint press release, even with a lock-up period. The content of the declaration is the message that you have successfully developed a so-called “delivery versus payment” method (German: “delivery against payment”). As an abbreviation “DvP” is used. The method itself is based on smart contracts and enables settlement, ie the fulfillment of transactions with tokenized assets across different blockchain platforms.
Earlier it was reported that such a project should be realized under the name “Project Ubin” on the Blockchain. Underlying this was the idea of the central bank to tokenize the Singapore dollar (SGB). The project began in November 2016 as an industry collaboration to explore distributed ledger technology (DLT) for financial clearing and settlement of payments and securities.
The current development, together with Deloitte, Nasdaq and the blockchain startup Anquan, has been a technology partner. The central bank and stock market press release said:
“The DvP prototypes have successfully demonstrated that financial institutions and corporate investors are capable of simultaneously exchanging and finalizing tokenized cryptocurrencies and security assets on different blockchain platforms.”
Sopnendu Mohanty, head of fintech at the Central Bank of Singapore, said:
“The project demonstrated the value of blockchain technology and demonstrated the benefits it offers the financial sector in the short to medium term. The concept of asset tokenization, as well as the other lessons learned, can potentially be used across a broad economic spectrum. This opens up a whole new world of possibilities. “
Head of Technology Department of Singapore Exchange Ltd. and project chair, Ms. Tinku Gupta, is quoted in the press release as saying:
“We're excited to be driving this important industry move to accelerate innovation in the marketplace. The project is based on the unique methodology developed by SGX that serves to realize real-world interoperability of platforms. At the same time, it offers the possibility of simultaneous exchange of cryptocurrencies and securities. We've submitted this methodology as our first technology patent ever. “
In addition to improved operational efficiency with lower payment risks, successful automation of DvP payments also has other benefits. So it offers finality, interledger interoperability and investor protection.
Sources: Ministry of Communications, Project Ubin, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/singapur-entwickelt-automatisches-blockchain-settlement-fuer-tokenisierte-assets/
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