UBS, SBI, and DBS Pioneer World’s First Blockchain-based Repo Transactionby Fintech News Singapore November 15, 2023
UBS, SBI, and DBS have successfully completed the world’s first live repurchase transaction (repo) using a digitally issued bond on a public blockchain. This development represents a step forward in integrating blockchain technology into mainstream financial practices.
The groundbreaking transaction, a part of MAS’ Project Guardian, highlights the potential of blockchain technology to facilitate cross-border financial activities more efficiently and effectively. The process involved using tokenised Japanese Yen to finance the purchase of a digital bond, with the entire transaction lifecycle managed on a public blockchain.
Mike Dargan of UBS noted the significance of this transaction in demonstrating the feasibility of instant, automated settlements across different jurisdictions using a public Distributed Ledger Technology (DLT) network.
“With this pioneering transaction, we proved the feasibility of executing a fully automated and instantly settled transaction across several jurisdictions by leveraging a public DLT network under a strict compliance framework.”
said Mike, UBS Group’s Chief Operations and Technology Officer.
Fernando Luis Vázquez Cao from SBI Digital Asset Holdings pointed out the transaction’s role in showcasing the capabilities of digital asset ecosystems in Japan and beyond.
“This transaction demonstrates what can be done in Japan and cross-border, in providing innovative and efficient products and services to the market and clients,”
This initiative reflects the evolving landscape of financial transactions, emphasising the benefits of blockchain, such as real-time settlement and improved operational efficiency, while maintaining compliance and security standards.
The joint project with DBS also aligns with ongoing efforts by UBS Asset Management and SBI Digital Markets in exploring the use of blockchain for fund issuance and distribution, including a recent pilot on a permissioned Ethereum network.
At the Singapore Fintech Festival 2023 (SFF 2023), attendees are being issued S$1,000 worth of demo trading credits to try out the Future of Finance Trading Portal, another initiative that is part of Project Guardian.