Using DLT can improve the efficiency of many aspects of the life cycle of financial products, from listing and issuance to transaction settlement.
Singapore stock exchange SGX has announced a joint venture with investment firm Temasek to use distributed ledger technology to streamline the issuance and trading of financial products listed on its platform.
According to a January 22 report from Nikkei Asia, this will initially consider bonds, funds and sustainable financial products, and may expand to other asset classes such as equities in the future.
SGX previously worked in a trial with Temasek and banking giant HSBC using blockchain technology to issue fixed income. The first results of this trial came in September 2020, with a Issue of $ 300 million bonds for local food and agribusiness company Olam International.
This was followed by a further 3 fixed-rate bonds issued through the system with a total value of more than 1 billion Singapore dollars ($ 750 million).
Today’s announcement formalizes the partnership in the formation of a limited liability company, while expanding and expanding the scope of the previous trial. Lee Beng Hong, head of fixed income, currencies and commodities at SGX, commented on the company:
“We are very excited to take our digital asset business to the next level in partnership with Temasek.”