UBS, SBI, and DBS complete first cross-border repo on blockchain

In a landmark financial event, UBS, SBI, and DBS have successfully executed the first cross-border repurchase agreement (repo) using a natively issued digital bond on a blockchain platform. This groundbreaking transaction, which took place today, represents a significant step forward in the use of distributed ledger technology (DLT) for simplifying and speeding up cross-border financial activities.

The collaboration involved tokenized Japanese Yen being used to finance the purchase of a digital bond, with the entire process managed on a public blockchain. This allowed for real-time settlement and increased operational efficiency. The move is indicative of the financial industry’s accelerating shift towards embracing innovative technologies to enhance transactional processes.

Mike Dargan of UBS praised the initiative, noting the potential for instant settlements across different jurisdictions using a public DLT network while still upholding stringent security standards. Fernando Luis Vázquez Cao from SBI Digital Asset Holdings highlighted the transformative impact that digital asset ecosystems can have, both within Japan and on a global scale.

This fully automated live repo transaction is part of the Monetary Authority of Singapore’s (MAS) Project Guardian and aligns with ongoing efforts by UBS Asset Management and SBI Digital Markets to delve into blockchain’s potential for fund issuance on a permissioned network.

In conjunction with this development, attendees at the Singapore Fintech Festival 2023 were given an opportunity to engage with the Future of Finance Trading Portal through demo trading credits. This initiative served to showcase the evolving nature of financial transactions and provided a hands-on experience with the new technology.

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