12 Nov
2018
Security tokens , Regulation

Singapore Government to Create Blockchain Based Security Token System

George Nicholson

The Monetary Authority of Singapore has joined forces with the Singapore Exchanges to develop a Delivery versus Payment system for tokenised securities.

Read more Security Token pieces here


The Monetary Authority of Singapore (MAS) is set to develop a Delivery versus Payment (DvP) platform with the Singapore Exchange (SGX) to allow settlements for tokenised securities across varying blockchain platforms. The announcement came from both the MAS and SGX over the weekend which is set to "help simplify post-trade processes and further shorten settlement cycles" as revealed in a press release.

The project has been created alongside some notable partners including Deloitte and the Nasdaq with prototypes of the DvP showing that settlements can be made with varying digital tokens on multiple blockchain platforms. The DvP is designed so that securities and money are simultaneously exchanged to the delivery of securities happens immediately once a payment has been taken. According to MAS' Chief Fintech Officer, Sopnendu Mohanty:

"Blockchain technology and asset tokenisation are fuelling a new wave of innovation globally. This project has demonstrated the value of blockchain technology and the benefits it can bring to the financial industry in the short to medium term. The concept of asset tokenisation, as well as other learnings gleaned from this project, can potentially be applied to a broad spectrum of the economy, creating a whole new world of opportunities.”

This powerful use of blockchain application marks the development that is coming from crypto friendly countries and this latest news from MAS and SGX seems to be paving the way. Ms Tinku Gupta, Head of Technology at SGX and Project Chair, said

“We are delighted to drive this important industry effort to accelerate innovation in the marketplace. Based on the unique methodology SGX developed to enable real-world interoperability of platforms, as well as the simultaneous exchange of digital tokens and securities, we have applied for our first-ever technology patent.”

With security tokens and tokenised assets fast becoming the token of choice for financial institutions and both corporate and retail investors, these tokens carry out the final exchange of both cryptocurrencies and security assets across multiple blockchain platforms.