Singapore partner HSBC, Standard Chartered to explore token usage in commerce, wealth management

Singapore is exploring the use cases of blockchain technology to get its fintech sector ready for a future reshuffle. The Monetary Authority of Singapore (MAS) has partnered with multinational banks Standard Chartered and HSBC to delve deeper into token use cases in trade finance and wealth management. Two pilot projects are being started in Singapore for testing. United Overseas Bank (UOB) is also part of this initiative and is working with Marketnode, a digital asset platform built by the Singapore Exchange (SGX).

As part of the first pilot project led by Standard Chartered, stakeholders will explore digital token can be used to simplify and expand trade finance tools.

The second pilot will focus on cryptographically defining wealth management products. This will be due to HSBC Bank.

The move is intended to convert commercial assets into negotiable instruments.

“We aim to improve access to an asset class – largely in the banking sector – with more investor participation. Not only have we been able to close the $1.7 trillion global trade finance gap (approximately 1,40,73,033 crore), this also gives investors the option to balance their portfolios. their investment with a traceable intrinsic value digital token,” a Coindesk Report quoted Kai Fehr, global head of commerce and working capital at Standard Chartered.

Asset encryption is the process of creating digital units of a physical or virtual asset held on blockchain networks. Each token of an individual asset, is valid for some percentage of the entity.

Asset tokenization can increase the liquidity of assets. Asset owners can sell 50,000 tokens, instead of selling the entire asset and losing its entire utility.

News of these new pilot projects comes later From Singapore The central bank announced that the first transactions using cryptographic versions of the Singapore yen and dollar have been successfully completed.

“Under an industry-first pilot program, DBS Bank, JP Morgan and SBI Digital Asset Holdings executed foreign exchange and government bond transactions based on liquidity pools including Singapore Government Securities Bonds. tokenized, Japanese Government Bonds, Japanese Yen (JPY) and Singapore Dollar (SGD),” MAS said in a official post.

Investments in Singapore’s crypto and blockchain companies grew to $1.48 billion (approximately Rs 11,800) in 2021, 10 times the previous year and almost half the total in Asia Pacific in 2021, follow KPMG.

More than 150 crypto companies applied for a new crypto payment license from MAS in 2020, although only a few have received a license so far.

On Tuesday, November 2, Stablecoin issuers Circle and Paxos received approval to operate in Singapore. While Circle is the issuer of USD Coin (UDSC), Paxos is behind Pax Dollar (USDP).

Affiliate links can be generated automatically – see ours Moral standards for details.


News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button