SGX (Singapore Exchange), alongside HSBC Singapore and Temasek, used DAML, a smart language created by Digital Asset, to successfully issue the first digital bond, replicating S$400 million 5.5-year public bonds. The exchange used its digital asset issuance, depository, and servicing platform to commence the bond issuance for Olam International. With this step, SGX has changed the path of using smart-contracts and distributed-ledger technology (DLT).
SGX utilized services of DAML, a smart language created by Digital Asset, to design the bond and its workflow parameters. DAML provides customized full-stack applications for DLT, Blockchain, and database, providing users with the tools to develop, test, and ship modernized methods. SGX solution will streamline the processes for issuers, investors, and chain of participants across asset servicing.
Over this success, Lee Beng Hong, Senior Managing Director, Head of Fixed Income, Currencies and Commodities (FICC), SGX said, “Debt capital markets globally are characterized by deeply ingrained legacy systems and processes which can be made faster, more accurate and efficient with this new technology. DLT and smart contracts are rapidly evolving technologies, and our vision is to fully digitalize the end-to-end corporate bond issuance and asset servicing process. We look forward to playing a part in strengthening the fixed income market infrastructure of Singapore, Asia’s fixed income hub for bond issuers.”
Yuval Rooz, Co-founder and CEO at Digital Asset, released a statement saying, “The bond market is one of the last bastions of risk, holding on to paper and manual processes. Despite the growth in electronic bond trading, there are still many aspects that require manual intervention. SGX’s DAML smart contract solution solves a major pain point market participants have been working to fix for years. We look forward to our continued work with SGX as they move to digitize the end-to-end bond issuance process.” Read the full post.