Continue reading this on our app for a better experience

Open in App
Floating Button
Home News Disruption and Digitalisation

SGX and Temasek Holdings partner to form APAC’s first exchange-led digital asset venture focused on capital markets

Felicia Tan
Felicia Tan • 2 min read
SGX and Temasek Holdings partner to form APAC’s first exchange-led digital asset venture focused on capital markets
The venture will focus on capital markets workflows through smart contracts, as well as ledger and tokenisation technologies.
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Singapore Exchange (SGX) and Temasek Holdings have, on Jan 22, entered into a joint venture (JV), which is set to be Asia Pacific’s (APAC) first exchange-led digital asset venture.

The venture will focus on capital markets workflows through smart contracts, as well as ledger and tokenisation technologies.

The partnership builds on the collaboration between SGX, Temasek and HSBC in August 2020, which lead to the issuance of Asia’s first public syndicated digital bond for Olam International, which totalled some $1 billion.

Through the JV, SGX will combine its multi-asset experience and strengths in operating market infrastructure, together with Temasek’s expertise in blockchain technology and ecosystem connectivity.


SEE: CICT issues $250 mil in fixed rate notes due 2032 with 2.15% p.a. coupon

The JV will also explore partnerships with fixed income issuance platforms to connect to its post-trade and asset servicing infrastructure to provide issuers, arranger banks, lawyers, investors and paying agents with a comprehensive network for Asia bonds.

See also: CMC Invest leans on wider market access to set it apart

In addition, the JV will focus on other existing and emerging asset classes with a growing market demand including sustainable finance.

Lee Beng Hong, senior managing director, head of fixed income, currencies and commodities (FICC) at SGX says, “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.”

“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 adds.

See also: SC Ventures' Libeara will soon let accredited investors in on tokenised Singapore-dollar government bond funds

Pradyumna Agrawal, managing director, Blockchain@Temasek, says, “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.”

Shares in SGX closed 15 cents lower or 1.5% down at $10.09 on Jan 22.

Highlights

Re test Testing QA Spotlight
1000th issue

Re test Testing QA Spotlight

Get the latest news updates in your mailbox
Never miss out on important financial news and get daily updates today
×
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.