Bursa Malaysia Completes Blockchain POC, Facilitates Growth Of Labuan Marketplace

KUALA LUMPUR, Dec 3 (Bernama) -- Bursa Malaysia Bhd has announced the successful completion of the bond on blockchain proof-of concept (POC) with Singapore’s Fintech technology provider, Hashstacs Pte Ltd (STACS). In a statement Thursday, the exchange said the POC was designed to facilitate the growth of the bond marketplace on the Labuan Financial Exchange (LFX) by harnessing opportunities afforded by the blockchain technology and the tokenisation of assets. The POC was executed via three different methodologies -- ‘Industry Driven’, ‘Lean-Agile’ and ‘Technology Interaction’. “The POC successfully demonstrated that digital bonds could be issued and managed on a blockchain, and its attributes of a single source of truth, smart contracts and automation allow for new service expansion offerings,” it said. Bursa Malaysia chief executive officer Muhamad Umar Swift said the partnership with STACS, as well as industry participants and regulators demonstrated that blockchain technology can deliver increased efficiencies, transparency and trust that can benefit the bond market. “These are key values that ensure we remain responsible for our efforts to develop a vibrant and attractive marketplace”, he said. Meanwhile, STACS managing director Benjamin Soh said although there has been plenty of experimentation in this space, successful collaborations between multiple participants have been few and far between. “Given our experience in capital markets technology, we are delighted to work with Bursa Malaysia, a national stock exchange with innovation at its core; demonstrating its commitment and leadership to the advancement of new technology through this partnership,” he added. According to the statement, the POC saw the industry taking its first step to explore the potential of blockchain and digital assets. “With the completion of the first milestone, future phases will look towards further collaboration, co-development and implementation of new technology to expand the Malaysian capital market and empower discoveries of new opportunities,” it said. -- BERNAMA