Bursa Malaysia Berhad (Bursa Malaysia) has announced the successful completion of the bond on blockchain proof-of-concept (POC) with Singapore’s Fintech technology provider, Hashstacs Pte Ltd (STACS).
The POC was designed to facilitate the growth of the bond marketplace at the Labuan Financial Exchange (LFX) by harnessing the opportunities afforded by blockchain technology and the tokenisation of assets.
It was executed via three different methodologies which were ‘Industry Driven’, ‘Lean-Agile’, and ‘Technology Interaction’. The POC successfully demonstrated that digital bonds could be issued and managed on a blockchain and its attributes of a single source of truth, smart contracts, and automation allow for new service expansion offerings.
“We are happy with the completion of the initial stage of the POC. The partnership with STACS, industry participants, and regulators demonstrated that blockchain technology can deliver increased efficiencies, transparency, and trust that can benefit the bond market.
These are key values that ensure we remain responsible for our efforts to develop a vibrant and attractive marketplace”, Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia said.
Benjamin Soh, Managing Director of STACS stated, “While there has been plenty of experimentation in this space, successful collaborations between multiple participants have been far and few between.
Given our experience in capital markets technology, we are delighted to work with Bursa Malaysia, a national stock exchange with innovation at its core, demonstrating its commitment and leadership to the advancement of new technology through this partnership.
Together, we were able to bring all the collective effort of multiple industry practitioners, forward-thinking regulators, and technologically advanced partners to explore utilities for the industry.”
The POC saw the industry taking its first step to explore the potential of blockchain and digital assets. With the completion of the first milestone, future phases will look towards further collaboration, co-development, and implementation of new technology to expand the Malaysian capital market and empower discoveries of new opportunities.
Bursa Malaysia would like to thank the Securities Commission of Malaysia, Labuan Financial Services Authority, CIMB Investment Bank Berhad, Maybank Investment Bank Berhad, and China Construction Bank Corporation Labuan Branch for their contributions to Bursa Malaysia’s latest technology-driven solution.