Bursa Malaysia is exploring blockchain technology and integrating it into the bond market by announcing the launch of the “port” project.

According According to a press release by Bursa Malaysia, the exchange is in the process of exploring a blockchain-based bond market project.

As we have indicated, the “port” project will use blockchain technology, which will allow a single source of information to be safely shared between the participating banks and the stock exchange.

Port project steps in Malaysia:

The first step in the project is to develop a registry for the “Labuan Financial Exchange” which is a bond market and subsidiary of the Malaysian Stock Exchange.

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The Labuan Financial Exchange later collaborated with a company to develop financial technology solutions.

Datuk Muhammad Omar Swift, CEO of Bursa Malaysia, stated that the main objective of the project is to develop the capabilities of the blockchain, and analyze the possibilities associated with the concept of asset tokenization.

he added:

By partnering with Hashtacs, we have an opportunity to provide a valuable learning experience.

To enhance knowledge and get ideas, which will allow us to grow in the blockchain bond market.

In addition, Omar Swift explained that this proof of concept seeks to increase operational efficiency, provided that the costs associated with operations, as well as bond issuance costs, are reduced.

Hashstacs is a Singapore-based digital financial solutions developer that specializes in asset management, custody services, post-trade agreements, digital identity and financial inclusion.

It should be noted that Hashstacs will also create blockchain solutions, to allow the issuance, publication, negotiation and redemption of bonds from the platform.

Smart contract technology will also be enabled to automate the trouble-free movement of funds and securities, and this further facilitates the movement of assets, as well as providing liquidity to market participants.

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In this regard, Benjamin Soh, CEO of the Gibraltar Stock Exchange, explained that these developments are a critical step in Malaysia’s efforts to attract regional and international bond listings.

Malaysian Bond Market:

The Malaysian bond market is one of the most developed and dynamic markets in East Asia and is the largest local currency bond market of the Association of Southeast Asian Nations (ASEAN).

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This is why the market offers a wide range of instruments, considering that it has the largest sukuk market in the world.

Local and foreign investors can buy and sell conventional and Islamic debt instruments through the over-the-counter (OTC) markets.

The fact is that in Malaysia, almost all securities are converted into digital form through the Electronic Funds Transfer (BNM) system and the real-time securities transfer system.

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