Singapore Exchange (SGX) and state-owned investment firm Temasek Holdings announced Friday a joint venture launching a digital assets business focusing on capital market products.
- SGX said it will use Temasek’s knowledge in blockchain technology for the digital asset business catering for products such as bonds using smart contracts, ledger, and tokenization technologies.
- The new venture will focus on capital markets, and the firms are looking to partner with fixed income issuance platforms for their post-trade infrastructure.
- On Sept. 1, SGX announced it had partnered with HSBC and Temasek to complete its first pilot digital bond for the food and agriculture business Olam International.
- SGX said its digital asset issuance and depository platform has been used to issue four digital bonds by several issuers of over S$1 billion (approximately US$753 million).
- “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 Lee Beng Hong, senior managing director, head of fixed income, currencies and commodities at SGX.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.