SGX, Temasek enter JV to boost digital asset infrastructure in capital markets

SINGAPORE Exchange (SGX) and Temasek have entered into a joint venture (JV) to advance digital asset infrastructure in capital markets.

In a press statement on Friday, SGX said the JV is set to be Asia-Pacific's first exchange-led digital asset venture focused on capital markets workflows through smart contracts, ledger and tokenisation technologies.

It follows a collaboration between SGX, Temasek and HSBC, which resulted in the issuance of Asia's first public syndicated digital bond for Olam International last August. SGX said its digital asset issuance, depository and servicing platform has been used to issue four digital bonds by several issuers, with a total size of over S$1 billion.

"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.

"Together, we will capitalise on digitalisation trends that continue to shape global capital markets, and advance the development of capital markets infrastructure in Asia," he added.

According to SGX, the JV will look to partner fixed income issuance platforms to connect to its post-trade and asset servicing infrastructure. This will provide issuers, arranger banks, lawyers, investors and paying agents with a comprehensive, issuance-to-settlement network for Asia bonds.

Concurrently, the JV will focus on other existing and emerging asset classes that have seen growing market demand, including funds and sustainable finance.

SGX said the partnership combines its multi-asset experience and "strengths in operating market infrastructure to the highest regulatory standards" with Temasek's expertise in blockchain technology and ecosystem connectivity.

Pradyumna Agrawal, managing director, Blockchain@Temasek, said: "We have been tracking the evolution of financial market systems and the opportunities for development of digital infrastructure that will transform how financial transactions are conducted.

"We are pleased to partner SGX in this effort towards continual improvement of capital markets through the development of innovative end-to-end digital asset solutions."