Singapore Stock Exchange is Developing a Project Related to Improving Settlements on Securities

The Singapore Stock Exchange announced cooperation with the country's monetary authority, which acts de facto as the central bank of the state. Cooperation will be the implementation of the project, which is associated with the use of blockchain technology in the matter of improving the efficiency of settlements on securities.

According to representatives of the Stock Exchange, this cooperation is aimed at increasing the speed of transactions. The idea is to automate transactions through smart contracts based on the blockchain. The ultimate goal is the development of a distributed network in which financial institutions and investors can make transactions with securities. By means of specialized platforms, they will be converted into digital tokens.

It is noted that the technology will be developed on the basis of an open source code received as a result of the latest development of the Ubin project, which the monetary authority conducted in 2016. This refers to internal interbank operations through distributed registration technology.

It should be noted that Tinku Gupta, who is the project manager, commented on the cooperation in the following way:

"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."

Note that, to date, the Australian Securities Exchange is also working on a project that is aimed at replacing the existing settlement system.

#Singapore, #exchange, #blockchain