Sing Exchange Finalized $300m Blockchain-based Digital Bond Issuance

By Daniel T. | September 27, 2020
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Singapore Exchange (SGX) – among top-tier, Singapore-based investment holding firms – has reportedly finalized the issuance of its first blockchain-based digital bond. 

Specifically, SGX has reportedly initiated deployment of its digital asset issuance platform, to carry out a 400 million Singapore dollar ($294 million) 5.5-year public bond issuance for, for the key player in the food and agriculture sector – Olam International. 

Specialized in Asia bond markets, the new digital bond is reportedly a joint project with SGX’s acknowledged blockchain partners, nominally HSBC Singapore and investment company Temasek. 

As a step in the plan, HSBC reportedly offered its on-chain payments solution, enabling instant settlement for a wide range of currencies, to take care of proceeds between the issuer, arranger and investor custodian.

To finalize the bond issuance, SGX reportedly integrated DAML, a major smart contact language designed by the US-based blockchain firm Digital Asset.

As smart contract is the foundation of SGX’s digital asset issuance platform, DAML reportedly made modeling of the bond and its distributed workflows for issuance and asset servicing over the bond’s life cycle possible. 

Per SGX, the most recent piloting phase of the new blockchain-enabled platform reportedly showed numerous enhanced features, nominally the elimination of settlement risks, as well as lowered settlement time, from five days to two days.

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