Providing blockchain-based financial services is the aim of a new joint venture between Singapore-owned investor Temasek and the city-state’s stock exchange SGX.
The company announced on Friday that it will use digital ledger tech to streamline the process of issuing and settling trading of listed products on the Singapore Exchange. It will start with bonds, funds and sustainable finance products, before potentially extending to cover other asset classes such as equities, Nikkei reports.
“We are very excited to take our digital asset business to the next level in partnership with Temasek,” said Lee Beng Hong, head of fixed income, currencies and commodities at SGX.
“Together [with Temasek], we will capitalize on digitalisation trends that continue to shape global capital markets, and advance the development of capital markets infrastructure in Asia.”
SGX said it is the first Asian exchange to streamline the process of issuing and trading syndicated bonds using blockchain-based tech.
“We have been tracking the evolution of financial market systems and the opportunities for development of digital infrastructure that will transform how financial transactions are conducted,” said Pradyumna Agrawal, managing director at Temasek. “We are pleased to partner SGX in this effort.”
SGX has previously collaborated with Temasek and banking giant HSBC in a trial using blockchain technology to issue fixed-income securities. The first results of this trial came in September 2020, with a $300-million bond issuance for local food and agribusiness company Olam International, Cointelegrapgh reports.