The Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) have developed Delivery versus Payment (DvP) capabilities, its built for the settlement of tokenised assets across different blockchain platforms. The hope is that this will help simplify post-trade processes and further shorten settlement cycles.
The platform was developed with technology partners Anquan, Deloitte, and Nasdaq.
The DvP prototypes were tested to carry out the simultaneous exchange and final settlement of digital tokens and securities assets on different blockchain platforms. The hope is that the ability to perform these activities simultaneously improves operational efficiency and reduces settlement risks for financial institutions and corporate investors.
The platform was also designed by MAS and SGX with finality, interledger interoperability and investor protection solution in place, also built on blockchain.
MAS and SGX have jointly published an industry report, which provides their findings on automating DvP settlement processes with Smart Contracts. The report also identifies key technology and operational considerations to ensure resilient operations, and defines a market framework that governs post-trade settlement processes such as arbitration.
This trial is part of Project Ubin which started in November 2016 as an industry collaboration to explore the use of Distributed Ledger Technology (DLT) for clearing and settlement of payments and securities
Featured Image via Monetary Authority of Singapore