SGX Uses DAML to Complete its First Digital Bond Issuance
Working with HSBC Singapore and Temasek, SGX completes pilot digital bond for Olam International
September 1, 2020
As blockchain adoption and digital transformation trends continue to surge across Asia, Singapore Exchange (SGX) is paving the way forward in the bond market. The Exchange announced today it completed its first digital bond issuance on SGX’s digital asset issuance, depository and servicing platform. Working with HSBC Singapore and Temasek, SGX successfully replicated a S$400 million 5.5-year public bond issue and a follow-on S$100 million tap of the same issue by Olam International. This marks the first step towards wider use of smart contracts and distributed ledger technology (DLT) for the Asian bond market
An Asia first for a syndicated public corporate bond, this digital bond marks another milestone in SGX’s use of digital asset technology, by streamlining processes for issuers, underwriters, investors and ecosystem participants across primary issuance and asset servicing.
SGX utilized DAML, the smart contract language created by Digital Asset, to model the bond and its distributed workflows for issuance and asset servicing over the bond’s lifecycle. SGX’s solution uses smart contracts to capture the rights and obligations of parties involved in issuance and asset servicing, such as arrangers, depository agents, legal counsel and custodians.
Click here to read the full press release issued by SGX, HSBC Singapore and Temasek.