Asset Tokenization in Singapore Coming Soon?
Singapore is continuing to take an open position on distributed ledger technologies (DLT), according to a report released by the partners under the auspices of Deloitte. In the report, the authors describe how the delivery-versus-payment platform could allow financial institutions to trade token-based assets without necessarily being stored on the same blockchain.
Ultimately, "Project Ubin", as the technology is called, introduces a multi-tracker platform designed to enable the interconnectivity of various blockchains. The platform is based on a complex system of smart contracts that, in short, automatically trigger settlements of assets at delivery. The Smart Contracts thus ensure that payment default risks are minimized, since processes run automatically.
Sopnendu Mohanty, head of the Singaporean stock market supervision MAS, is satisfied:
"Blockchain technology and asset tokenization are driving a new wave of innovation worldwide. This project has proven the value of blockchain technology and the benefits it can bring to the financial industry in the short to medium term. The concept of asset tokenization, as well as other insights from this project, can potentially be applied to a broad range of economies and create a whole new world of deployment opportunities. "
Tokenization of assets in the future the standard?
Asset tokenization is one of the major uses of DLT. One example of this is the issue of a promissory note by Erste Group in Austria. As CriptomonedaseICO reported, the promissory note was issued for 20 million euros entirely on a block chain.
Singapore, meanwhile, has an open position with regard to DLT. Similar to Malta, the state creates the regulatory foundations to recruit blockchain companies. For example, on November 12, we report on renewable energy certificate trading, which the state intends to transact entirely through a blockchain.
At the consensus conference in Singapore, the head of technology at MAS said:
"We are pursuing an approach in which our rules are geared not to the technology platform itself, but to the purpose. We do not want to regulate a particular technology directly because the technologies are getting better. "
This statement signals a certain openness of the regulatory authorities of the city state to the DLT.
How it is ordered to the regulation in this country, you will learn at this point.
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