Blockchain For Digital Assets Is Tested In Singapore
SGX and the Monetary Authority of Singapore (MAS) conducted the successful testing of a blockchain solution for placing tokenized assets, as follows from the SGX's press release.
The system testing has been launched in the late summer of 2018 when the SGX and the regulatory body started the cooperation with Nasdaq, the American stock exchange, Deloitte, a Big Four member, and Anquan, a local tech firm.
Such collaboration led to the introduction of the blockchain-based solution called Delivery versus Payment (DvP), which constitutes a system that allows making payments for valuable assets at the moment of their delivery. Thus, financial organizations and investment companies will have an opportunity to exchange digital assets and make payments at the same time. SGX claims the system will contribute to the operations' efficiency and mitigate risks significantly.
Tinku Gupta, the SGX representative, declares that the company filed the first patent application for blockchain, which will help to combine various platforms and exchange securities with tokenized assets.
At the same time, the financial regulator claimed in September that the existing tokens should not be subject to the regulations on securities. MAS distinguishes three types of tokens: utility, payment, and security tokens. The classification of each of them and their characteristics change over time. Tokenized assets can be taken under control only if they possess the properties of securities.
Singaporean firms are increasingly implementing DLT-based solutions in various spheres. In the summer of 2018, CrimsonLogic developed a distributed ledger for cross-border trade between China and the Association of Southeast Asian Nations (ASEAN). Later, SP Group introduced a blockchain solution for buying and selling solar energy throughout the world.
As previously reported, the MAS will allow crypto companies to open bank accounts.