SGX: Applied for first-ever tech patent for blockchain trade-settlement prototypes

Signage at the SGX building on Shenton Way in Singapore; taken October 2018.Signage at the SGX building on Shenton Way in Singapore; taken October 2018.

Singapore Exchange and the Monetary Authority of Singapore said on Sunday that they successfully developed prototypes to settle trades of tokenised assets across different blockchain platforms, spurring the stock exchange to apply for its first-ever technology patent.

The prototypes for Delivery versus Payment (DvP) showed that financial institutions and corporate investors can exchange and complete final settlement of tokenized digital currencies and securities assets simultaneously, which improves efficiency and reduces settlement risks, it said in a filing to SGX on Sunday.

DvP is a settlement procedure where securities and payment change hands simultaneously to ensure that the securities are only delivered if payment is made, it said.

“Based on the unique methodology SGX developed to enable real-world interoperability of platforms, as well as the simultaneous exchange of digital tokens and securities, we have applied for our first-ever technology patent,” Tinku Gupta, head of technology at SGX, said in the statement.

The DvP prototypes were developed with technology partners Anquan, Deloitte and Nasdaq, SGX and MAS said.

“The collaboration also demonstrated that DvP settlement finality, interledger interoperability and investor protection can be achieved through specific solutions designed and built on blockchain technology,” the statement said.