Finance Breaking news SGX issues first digital bond last financial news

Breaking-Finance.Com - Singapore Exchange (SGX), working together with HSBC Singapore and Temasek, has completed its first pilot digital bond issuance on behalf of Olam International.

Finance Breaking news SGX issues first digital bond last financial news

Breaking-Finance.Com - Singapore Exchange (SGX), working together with HSBC Singapore and Temasek, has completed its first pilot digital bond issuance on behalf of Olam International.

Finance Breaking news SGX issues first digital bond last financial news
01 September 2020 - 08:30

Breaking-Finance.Com - Singapore Exchange (SGX), working together with HSBC Singapore and Temasek, has completed its first pilot digital bond issuance on behalf of Olam International. The digital bond, which replicated a S$400 million 5.5-year public bond issue and a follow-on S$100 million tap of the same issue, demonstrated a streamlined processes for issuers, underwriters, investors and ecosystem participants across primary issuance and asset servicing, says SGX. SGX utilised DAML, the smart contract language created by Digital Asset, to model the bond and its distributed workflows for issuance and asset servicing over the bond’s lifecycle. The smart contracts capture the rights and obligations of parties involved in issuance and asset servicing, such as arrangers, depository agents, legal counsel and custodians. The digital bond used HSBC’s on-chain payments platform for settlement in multiple currencies between the issuer, arranger and investor custodian.

. We look forward to bringing this technology to our clients in Singapore and beyond.”Key efficiencies observed within the pilot include timely Isin generation, elimination of settlement risk, a reduction in primary issuance settlement rom five days to two days, as well as automation of coupon and redemption payments and registrar functionality. “The bond market is one of the last bastions of risk, holding on to paper and manual processes,” says Yuval Rooz, co-founder and CEO, Digital Asset. “Despite the growth in electronic bond trading, there are still many aspects that require manual intervention. SGX’s DAML smart contract solution solves a major pain point market participants have been working to fix for years."

Source = Breaking-Finance.Com

Financial breaking news

This news 38 hits received.

Finance Breaking news SGX issues first digital bond last financial news


Finance Breaking news SGX issues first digital bond last financial news


Finance Breaking news SGX issues first digital bond last financial news


Finance Breaking news SGX issues first digital bond last financial news

COMMENTS

  • 0 Comment
MAY INTEREST YOU x
Finance Breaking news Alliance Data to buy BNPL player Bread last financial news
Finance Breaking news Alliance Data to buy BNPL player Bread last...
Finance Breaking news Upgrade launches cash back programme that rewards customer for paying off their debt last financial news
Finance Breaking news Upgrade launches cash back programme that...