Singaporean bank DBS uses DeFi to trade currencies and government securities
Leading Asian financial institution DBS Bank has applied DeFi technology for a project supported by the Monetary Authority of Singapore.
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DBS Bank, a leading financial services group in Asia, is applying decentralized finance (DeFi) for a project supported by the central bank of Singapore.
DBS has launched a test of trading foreign exchange (FX) and government securities using authorized or private DeFi liquidity pools, the company announced on November 2.
The development is part of Project Guardian, a cross-industry collaborative effort launched by the Monetary Authority of Singapore (MAS). Conducted on a public blockchain, the transaction included the purchase and sale of tokenized Singapore Government Securities (SGS), Singapore Dollar (SGD), Japanese Government Bonds and Japanese Yen (JPY).
The project showed that trading on a private DeFi protocol enables simultaneous instantaneous trading, settlement, clearing and custody operations. The initiative could potentially transform existing trading processes by providing better liquidity across multiple assets and financial markets, DBS said.
According to DBS Chief Strategy Officer Han Kwee Juan, Project Guardian's latest developments lay the groundwork for building global institutional liquidity pools enabling faster transactions, greater transparency, reduced settlement risks and other benefits. Han noted that smart contracts hold great promise for transaction execution and verification, stating:
"Smart contracts will reshape the way execution can be achieved in a highly reliable way, especially if they take place in a licensed market where all anonymous wallets are verified by trust anchors such as processes Know Your Customer."
Han also pointed out that a highly liquid market attracts more investors and improves efficiency by bypassing middlemen. “Currently, currencies and government securities are mostly traded in over-the-counter markets involving multiple intermediaries, which leads to friction in the settlement process,” he added.
Related:
Leading Asian financial institution DBS Bank has applied DeFi technology for a project supported by the Monetary Authority of Singapore.
New
DBS Bank, a leading financial services group in Asia, is applying decentralized finance (DeFi) for a project supported by the central bank of Singapore.
DBS has launched a test of trading foreign exchange (FX) and government securities using authorized or private DeFi liquidity pools, the company announced on November 2.
The development is part of Project Guardian, a cross-industry collaborative effort launched by the Monetary Authority of Singapore (MAS). Conducted on a public blockchain, the transaction included the purchase and sale of tokenized Singapore Government Securities (SGS), Singapore Dollar (SGD), Japanese Government Bonds and Japanese Yen (JPY).
The project showed that trading on a private DeFi protocol enables simultaneous instantaneous trading, settlement, clearing and custody operations. The initiative could potentially transform existing trading processes by providing better liquidity across multiple assets and financial markets, DBS said.
According to DBS Chief Strategy Officer Han Kwee Juan, Project Guardian's latest developments lay the groundwork for building global institutional liquidity pools enabling faster transactions, greater transparency, reduced settlement risks and other benefits. Han noted that smart contracts hold great promise for transaction execution and verification, stating:
"Smart contracts will reshape the way execution can be achieved in a highly reliable way, especially if they take place in a licensed market where all anonymous wallets are verified by trust anchors such as processes Know Your Customer."
Han also pointed out that a highly liquid market attracts more investors and improves efficiency by bypassing middlemen. “Currently, currencies and government securities are mostly traded in over-the-counter markets involving multiple intermediaries, which leads to friction in the settlement process,” he added.
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