Singapore Exchange (SGX) to issue bonds on blockchain

Singapore Exchange (SGX), a large investment holding company in Singapore, has issued its first digital bonds powered by blockchain technology. The blockchain-powered bonds [...] https://www.pinterest.com/pin/1085437947660215829/

Singapore Exchange (SGX), a large investment holding company in Singapore, has issued its first digital bonds powered by blockchain technology. Bonds on blockchain According to an official announcement on September 1, SGX launched a digital asset issuance platform to conduct a 5.5-year public bond issue worth 400 million Singapore dollars ($194 million) for large local food company Olam International. Focused on Asian markets, the new digital bond was made possible through collaboration with SGX's blockchain partners, such as HSBC Singapore and investment firm Temasek. As part of the joint initiative, HSBC provided its on-chain payment solution, enabling instant settlement in multiple currencies to handle the transaction between the issuer, arranger and investment trustee. To issue the bonds, SGX implemented DAML, a core smart contract language developed by US blockchain start-up Digital Asset. Smart contracts allow the platform to capture the rights and responsibilities of parties involved in issuing and servicing assets, including arrangers, escrow agents, legal advisors and custodians. According to SGX, the latest pilot program of the new blockchain platform has shown great effectiveness in eliminating settlement risk and reducing settlement time from five to two days. The latest pilot program was conducted after a collaboration with HSBC Singapore and Temasek in November 2019. The collaboration was to explore the use of DLT technology for bond issuance. Leveraging Blockchain Technology Many companies around the world are trying to implement blockchain technology to provide more benefits to the global bond market. In July 2020, the Philippine Bureau of the Treasury launched a blockchain application to distribute government-issued government bonds. The potential benefits of blockchain in the bond market are also being explored by South Korean and Thai authorities. A few days ago, we reported that Dutch logistics company, Portbase, successfully completed the first phase of its integration with blockchain platform, TradeLens. The two companies will together handle operations and key processes for the ports of Amsterdam and Rotterdam. Everledger, which creates DLT-based supply chains, has begun working with local Chinese diamond retailers to ensure that customers receive only genuine gemstones. Tags Blockchain bonds Singapore