Malaysia’s Stock Exchange To Trial Blockchain Bond Platform

Bursa Malaysia, the country’s stock exchange, is developing a proof-of-concept (POC) for a blockchain-based bond trading venue.

Based in Kuala Lumpur, Bursa Malaysia is a fully integrated exchange, offering a wide range of exchange-related services, including trading, clearing, settlement, and depository services. The exchange also offers information services related to the Malaysian securities market.

In a press release, Bursa Malaysia announced a partnership with blockchain startup Hashtacs to develop the technology for Project Harbour, which will be based in the offshore island of Labuan and hosted by Labuan Financial Exchange, a subsidiary of Bursa Malaysia.

Bursa Malaysia said that Project Harbour will use distributed ledger technology (DLT) and the tokenisation of assets to grow its fixed income market. The goal of the platform is to enable the issuance of digital bonds, while smart contracts automate the processing of the securities.

“The exchange closely follows current trends in innovation and new technologies with a view to remaining relevant in this competitive landscape,” said Bursa Malaysia chief executive Muhamad Umar Swift. “One of the ways to achieve this is through collaborations with innovative companies.”

Benjamin Soh, managing director of Hashtacs, said that the creation of an industry wide ecosystem will allow for a complete solution in origination, servicing, trading, clearing and settlement, allowing Malaysia to potentially have the first mover advantage in attracting regional and international bond listings.

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