Bursa Malaysia Partners with Digital Asset and VMware to Develop Dematerialization Proof-of-Concept
The project aims to test the efficiency and operational feasibility of Daml and VMware blockchain-powered technologies in the issuance of dematerialized securities certificates
Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”), today embarked on a Dematerialization Proof-of-Concept to facilitate the dematerialization of securities certificates leveraging Daml smart contracts from Digital Asset and a highly scalable distributed ledger platform from VMware. The project aims to test blockchain-powered technologies’ efficiency and operational feasibility in the issuance of dematerialized securities certificates, with initial emphasis on Structured Warrants. Bursa Malaysia estimates this initiative could improve the ease of doing business by reducing the reliance on manual work to create, manage and withdraw Structured Warrant certificates.
Commenting on the news, Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, said:
“Today's significant collaboration with Digital Asset and VMware is the continuation of our larger goal of exploring transformative technologies for the Exchange and achieving full dematerialization for all of its physical securities.”
Yuval Rooz, CEO & Co-Founder at Digital Asset, said:
We are thrilled to be leading the dematerialization proof-of-concept with Bursa Malaysia in collaboration with VMware Blockchain. This is a critical smart contract initiative that has the potential to transform the Malaysian securities industry.”
Brendon Howe, Vice President and General Manager, Blockchain, VMware, added:
“As Bursa delivers transformational enhancements across Malaysia’s financial market ecosystem, VMware is excited to be the chosen distributed ledger technology partner to help realise these goals."
The blockchain-powered proof-of-concept will aid in the simplification of Structured Warrants issuances. It provides a centralized source of truth to increase transparency, improve data quality, and reduce potential disruptions in physical transportation and in-person delivery throughout the eligibility life cycle. In addition, the proof-of-concept employs electronic vaulting technology for data storage and transportation, as well as an e-signature method for digital certificates execution, resulting in improved Structured Warrants eligibility and issuance processing.
This initial phase of the proof-of-concept will bring together industry collaborators ― Macquarie Capital Securities (Malaysia) Sdn Bhd and Maybank Investment Bank Berhad ― to test an electronic term sheet capability. The proof-of-concept will also look into improving efficiency on downstream processes such as electronic scrip registration and recording.
This latest technology-driven solution represents a significant step forward in the Exchange’s quest for complete dematerialization, and is part of Bursa Malaysia’s focus on technology-driven innovation to deliver its promise of “Creating Opportunities, Growing Value”.