29 November 2018

The Monetary Authority of Singapore (“MAS”) and Singapore Exchange (“SGX”) have successfully developed Delivery versus Payment (“DvP”) capabilities for the settlement of tokenised assets across different blockchain platforms. Announced on 11 November 2018, this achievement will help simplify post-trade processes and further shorten settlement cycles.

The DvP prototypes demonstrated that financial institutions and corporate investors are able to carry out the simultaneous exchange and final settlement of tokenised digital currencies and securities assets on different blockchain platforms, thus improving operational efficiency and reducing settlement risks. The collaboration also demonstrated that DvP settlement finality, interledger interoperability and investor protection can be achieved through specific solutions designed and built on blockchain technology.

MAS and SGX have jointly published an industry report, which provides a comprehensive view of 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.

Reference materials

The following materials are available on MAS website www.mas.gov.sg:

 

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