Singapore Exchange (SGX) is partnering with state investment company Temasek Holdings to improve the city state's digital asset infrastructure in capital markets, including potentially tying up with bond issuing platforms as well as focusing on sustainable finance and other in-demand asset classes.
The move comes after SGX, HSBC Singapore and Temasek teamed up for the issuance of Asia’s first public syndicated digital bond last August, a S$400 million (US$301.6 million) offering by Olam International.
The new partnership combines SGX’s “multi-assets experience and strengths in operating market infrastructure, together with Temasek's expertise in blockchain technology and ecosystem connectivity", the bourse says in a statement on January 25.
They will look to partner bond issuance platforms to connect SGX’s post-trade and asset servicing infrastructure, “providing issuers, arranger banks and lawyers with a comprehensive, issuance-to-settlement network for Asia fixed income”.
"Concurrently, the partnership will also focus on other existing and emerging asset classes that have seen growing market demand, including funds and sustainable finance," SGX adds.
According to Lee Beng Hong, senior managing director and head of fixed income at SGX, the bourse is "very excited to take our digital asset business to the next level in partnership with Temasek".
"Together, we will capitalise on digitalisation trends that continue to shape global capital markets," he says in the statement.