Singapore’s C-bank Partners with Deloitte, Nasdaq for Blockchain Settlement Platform

The new solution will be used for delivery versus payment settlements of tokenized assets across several blockchain platforms.

by Nina Dimitrova
24 August • 2 mins
In News

The Monetary Authority of Singapore (MAS), which serves as the country’s central bank and regulatory authority, and the Singapore Exchange (SGX) said on Friday they have teamed up to develop a blockchain-based settlement platform for tokenized assets.

According to the announcement, the Delivery versus Payment (DvP) solution will be developed in partnership with Deloitte, Nasdaq and Anquan.

The new tool will be able to support settlements across different blockchain platforms and will allow financial institutions and corporate investors to carry out simultaneous exchange and final settlement of tokenized securities and digital currencies. This supposedly will improve operational efficiency and will reduce settlement risks. DvP is a settlement procedure in which securities and money are simultaneously exchanged to make sure that the securities are delivered only if the corresponding payment is made.

“This initiative will deploy blockchain technology to efficiently link up funds transfer and securities transfer, eliminating both buyers’ and sellers’ risk in the DvP process,” said Tinku Gupta, head of technology at SGX. “This is a collaborative innovation bringing together multiple players to pursue real-world opportunities that will benefit the ecosystem.”

The technological partners Deloitte, Nasdaq and Anquan will utilize the open-source software developed and delivered in Project Ubin, which was launched in 2016 by MAS and Deloitte. It explored the distributed ledger technology (DLT) and its use for clearing and settlement of payments and securities to make financial transactions and procedures faster, cheaper and more transparent.

Now the new project will explore the potential for automating DvP settlement with smart contracts and produce a report due in November.

“Blockchain technology is radically transforming how financial transactions are performed today, and the ability to transact seamlessly across blockchains will open up a world of new business opportunities,” said Sopnendu Mohanty, chief fintech officer of MAS. “The involvement of three prominent technology partners highlights the commercial interest in making this a reality. We expect to see further growth in this space as FinTechs leverage on the strong pool of talent and expertise in Singapore to develop innovative blockchain applications and benefit from the new opportunities created.”

MAS is one of the national financial regulators that took a positive stance towards the blockchain technology before it became trendy and has been exploring its possible applications for a few years now.