Bursa Malaysia Berhad, the stock exchange of Malaysia, has partnered with Hashstacs Pte Ltd, based in Singapore, regarding a bond on blockchain proof-of-concept (POC).
The project has been labeled “Project Harbour” and it aims to explore distributed ledger technology and tokenization of assets while boosting the growth of the bond marketplace – Labuan Financial Exchange.
Bursa Malaysia, in partnership with Securities Commission of Malaysia, Labuan Financial Services Authority, CIMB Investment Bank Berhad, Maybank Investment Bank Berhad, and China Construction Bank Corporation Labuan Branch, will utilize the Trident Platform built by Hashstacs to test the end to end trade lifecycle management of tokenized bonds.
According to Bursa Malaysia, smart contract technology will automate the movement of funds and securities, asset servicing and the provision of liquidity to market participants.
Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, said the Exchange closely follows current trends in innovation and new technologies with a view to remaining relevant in this competitive landscape.
“One of the ways to achieve this is through collaborations with innovative companies. The POC conducted in partnership with Hashstacs presents an opportunity to provide a valuable learning experience to build knowledge and obtain insights that will allow us to grow the bond marketplace. The POC aims to increase operational efficiency, driving down the cost of operations as well as the cost of issuing bonds. We will continue to tap into emerging technological innovations to further develop the marketplace and improve the effectiveness and accessibility of the Exchange.”
Benjamin Soh, Managing Director of Hashstacs, said his company will develop a blockchain solution to issue, service, trade and clear bonds on the platform. Soh anticipates that Malaysia may potentially have a first-mover advantage.