In a blockchain breakthrough, Singapore’s essential bank and the country’s primary stock exchange have successfully developed an automated method for rapid settlements of tokenized assets.
In an statement on Sunday, the government of Singapore announced the successful development of a Delivery versus Payment (DvP) mechanism – powered by smart engages – for settlement of tokenized assets over different blockchain platforms.
As reported by CCN.com in August, the joint endeavor was built upon the blockchain revealed by the central bank’s effort to tokenize the Singaporean dollar into a digital currency – dubbed ‘Project Ubin’.
Emerged with technology partners Deloitte and Nasdaq alongside blockchain startup Anquan, the DvP prototypes successfully ‘demonstrated that fiscal institutions and corporate investors are able to carry out the simultaneous exchange and final settlement of tokenized digital currencies and guardings assets on different blockchain platforms,” the announcement confirmed.
Sopnendu Mohanty, fintech chief at the Monetary Authority of Singapore, the countryside’s defacto central bank, stated:
This project has demonstrated the value of blockchain technology and the benefits it can bring to the monetary industry in the short to medium term. The concept of asset tokenisation, as wel as other learnings gleaned from this invent, can potentially be applied to a broad spectrum of the economy, creating a whole new world of opportunities.
In addition to improved operational skill with reduced settlement risks, the successful automation of DvP settlements with smart contracts also demonstrated colonization finality, interledger interoperability and investor protection, an industry report further added.
Featured image from Shutterstock.
At length modified: June 10, 2020 10:51 AM UTC