MAS, SGX and Partners to explore DvP Settlement Across Blockchain Platforms

The Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) announced in a joint statement today that they will be collaborating with Anquan, Deloitte and Nasdaq to develop Delivery versus Payment (DvP) capabilities for the settlement of tokenised assets.

DvP is a settlement procedure where securities and money are exchanged simultaneously on the condition that the corresponding payment is made, to ensure that delivery of the security occurs.

The development of DvP capabilities across different Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term platforms will allow financial institutions to execute simultaneous exchange and final settlement of the assets. According to the statement, this will improve operational efficiency and at the same time, reduce settlement risks.

Together, Anquan, Deloitte and Nasdaq will produce a report on the potential to automate DvP processes with Smart Contracts. They will also identify the key considerations needed in order to protect investors, the statement said.

The report will build upon the second phase of Project Ubin

The report from the three firms will be released by November of this year. It will leverage the open-source software prototypes that were built in the second phase of Project Ubin, an industry collaboration which began in November 2016 to determine whether distributed ledger technology (DLT) can be used to clear and settle Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and securities.

Commenting on the project, Sopnendu Mohanty, Chief FinTech Officer of MAS, said: “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.

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.”

Head of Technology at SGX and Project Chair Tinku Gupta added: "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.”