Security Token Offering in Singapore

Security Token Offering in Singapore

Capital Markets CIO Outlook | Thursday, November 22, 2018

Automated Delivery versus Payment (DvP), was jointly developed by the Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX) to allow the settlement of tokenized securities across numerous blockchain platforms. This helps in simplifying the post-trade processes. The DvP systems ensure that securities are delivered only when the payment is made. Security token system is developed in the partnership of Anquan, Deloitte, and Nasdaq. The archetype of DvP, have already concluded that settlements can be done in different digital tokens on different blockchain platforms. MAS and SGX have recently published a report detailing the payment settlement using the smart contracts.

Sopnendu Mohanty, MAS chief fintech officer, stated that blockchain could bring more benefits and value to the financial sector or industry in a short-term period. Implying the concept of asset tokenization and other learnings to a broad spectrum of the economy can create many new opportunities globally.

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Magnus Haglind, senior vice president of Nasdaq, demonstrated how to develop interoperability between the multiple networks for securing settlement between various assets. This is a crucial step in applying blockchain to the capital markets.

Tinku Gupta, head of technology commented that, based on a specific methodology, SGX is developed to enable real-world interoperability of platforms and exchange of digital tokens and securities. SGX accelerates the innovation in the marketplace.

This project was announced in August 2018 as a spin-off from the other project Ubin, which was a collaborative project with the financial services industry. This happened just before the Singapore FinTech Festival 2018, organized on 12th to 16th November. Singapore recently organized a token day that is implemented to bring crypto to the masses by raising awareness and encouraging its usage and adoption. Vendors will be accepting the crypto payments and offer goods in exchange for digital assets.

The tokenization of financial instruments and assets presents a truly unique opportunity to disrupt the global financial industry. Also, the blockchain and its many game-changing features allow for a level of transparency, efficiency, and security to be brought into the financial world. Miami Crypto Exchange and its products will lead the way for a fully compliant-focused tokenized world to be created.

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