Thu. Mar 4th, 2021

Regulation HK

Financial Regulator

SGX, Temasek Partner on Digital Asset Infrastructure in Capital Markets

2 min read

A new JV will use blockchain-based technologies to provide an issuance-to-settlement network for Asia bonds, funds and sustainable finance products.

SGX (Singapore Exchange) and Temasek have established a new joint venture which will focus on enhancing capital markets workflows through the use of smart contract, ledger and tokenisation technologies.

The partnership combines SGX’s multi-asset experience and strengths in operating market infrastructure with Temasek’s expertise in blockchain technology and ecosystem connectivity.

The JV will look to partner with fixed income issuance platforms to connect to its post-trade and asset servicing infrastructure, providing issuers, arranger banks, lawyers, investors and paying agents with a comprehensive, issuance-to-settlement network for Asia bonds.

Concurrently, the JV will focus on other existing and emerging asset classes that have seen growing market demand, including funds and sustainable finance.

The new venture builds on collaboration between SGX, Temasek and HSBC which culminated in the issuance of Asia’s first public syndicated digital bond for Olam International in August 2020.

In total, SGX’s digital asset issuance, depository and servicing platform was used to issue four digital bonds by several issuers, with a total size of over SGD 1 billion.

“The early success in our digital bond issuance platform has paved the way for SGX to make a larger move into digital assets, and we are very excited to take our digital asset business to the next level in partnership with Temasek,” said SGX Senior Managing Director and Head of FICC, Lee Beng Hong.

“Together, we will capitalise on digitalisation trends that continue to shape global capital markets, and advance the development of capital markets infrastructure in Asia.”

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