Singapore Exchange Adopts Blockchain Technology to Systematize Trading Processes

The adoption of distributed ledger technology can result in several advantages to the lifecycle of products offered in the financial arena, from issuing and listing to even trade settlement.

In this regard, Singapore Exchange (SGX) has entered into collaboration with Temasek, an investment company, to utilize distributed ledger technology (DLT) to simplify the issuance, buying and selling of investment vehicles listed on its exchange.

As per a report from Nikkei Asia, to begin with, the exchange will look at bonds, funds and viable investment assets. Other asset categories, equities for example, will be added in the months ahead.

SGX has earlier partnered with Temasek and banking behemoth HSBC in a pilot program that utilized blockchain technology to disburse fixed-income securities. The outcome of the first trial involving the issuance of $300 million worth bonds for domestic food and agricultural business enterprise Olam International was revealed in September 2020.

The aforesaid trial was followed by an issue of three fixed-income bonds worth S$1 billion ($750 million). The announcement detailed above cements the collaboration in the establishment of a limited company, while widening and extending the earlier trial. Lee Beng Hong chief of SGX’ fixed income, currencies and commodities, opined on the development as follows:

“We are very excited to take our digital asset business to the next level in partnership with Temasek.”