The use of distributed ledger technology can bring efficiencies to many aspects of the lifecycle of financial products, from list and issuing through to the settlement of trades.

Singapore Exchange, or SGX, has announced a joint venture with investment firm Temasek to employ DLT to streamline the issuance and trading of financial products listed on its platform.

According to a Friday study from Nikkei Asia, this volition initially consider bonds, funds and sustainable financial products, and it may be extended in the time to come to cover other asset classes such as equities.

SGX has previously collaborated with Temasek and banking giant HSBC in a trial using blockchain engineering science to event fixed-income securities. The showtime results of this trial came in September 2020, with a $300-million bond issuance for local food and agribusiness visitor Olam International.

This was followed past a further three fixed-income bonds issued through the arrangement, totalling over 1 billion Singapore dollars ($750 1000000) in value.

Today'south annunciation formalizes the partnership in the creation of a limited company while extending and expanding the range of the previous trial. Lee Beng Hong — SGX's caput of fixed income, currencies and commodities — commented on the venture:

"We are very excited to take our digital asset business to the adjacent level in partnership with Temasek."