HSBC Singapore announced yesterday that due to the rapid development of the fixed-income market in Asia, it will work with the Singapore Exchange and Temasek to study the use of blockchain technology in a fixed-digit market. They hope to establish the first end-to-end blockchain project in the Asian securities market, reducing the cost of issuers and investors.
HSBC pointed out that the fixed-income market in Asia continues to grow rapidly, but the lack of a single platform allows different people to exchange information and track the life cycle of the coupons, making the issuance of bonds and related services inefficient. Therefore, it is hoped that through the pilot scheme, the application of token-based securities and smart contracts will simplify the process and reduce the costs of issuers, investors, bond arrangers, and custodians.
HSBC Singapore Chief Executive Tony Cripps said in a press release that the technical potential of the blockchain has not yet been reflected in the fixed income market. Only by working with market participants can you understand its true feasibility. “In cooperation with the SGX and Temasek, we hope to find out how to make virtual assets a real opportunity.”
As for Li Minhong, head of the Fixed Income, Monetary and Commodities Department of the SGX, the Exchange, as the world’s largest listed place for bond issuers in Asia, is pleased to participate in this cooperation program, and this new mode of operation, It is also expected to reduce costs for market participants. Temasek President Xie Songhui believes that the blockchain has huge potential to reform business and create new opportunities. This partnership allows Temasek to promote the impact of emerging technologies and better understand how to benefit the economy.