After the testing phase of DLT-powered bond issues returned success status, Singapore Exchange (SGX) has reportedly established a firm with investment entity Temasek, to widen the scope of the tech. 

Specifically, SGX has reportedly disclosed details regarding a joint venture with investment entity Temasek, in a bid to utilize DLT for making the issuance and trading of financial products listed on its platform.

As disclosed by Nikkei Asia, the scope of the firm will reportedly be covering bonds, funds and sustainable financial products initially, with a plan to further its footprints in the future to facilitate other asset classes, nominally equities. 

SGX has reportedly teamed up with Temasek and banking heavyweight HSBC before, in a trial employing blockchain as a solution for generating fixed-income securities. 

The first result of the testing phase reported surfaced in September last year, with a $300-million bond issuance dedicated to Singapore-based food and agribusiness firm Olam International.

This was reportedly accompanied with three additional fixed-income bonds generated via the system, accumulating more than 1 billion Singapore dollars ($750 million) in value. 

The official revelation has reportedly granted formalization to the alliance, in the design of a limited firm, and at the same time widening the scope of the past trial. 

“We are very excited to take our digital asset business to the next level in partnership with Temasek.” Lee Beng Hong — SGX’s head of fixed income, currencies and commodities – reportedly remarked regarding the situation.