Malaysia’s stock exchange this month completed a bond on blockchain proof-of-concept (POC). IFN Fintech has learned that the bourse is interested to potentially execute something similar in the Islamic capital markets space.
Bursa Malaysia earlier in December confirmed that it completed the POC in collaboration with Singapore’s Hashstacs. Designed to facilitate the growth of the bond marketplace at the Labuan Financial Exchange by harnessing the opportunities afforded by blockchain technology and the tokenization of assets, the POC successfully demonstrated that digital bonds could be issued and managed on a blockchain and its attributes of a single source of truth, smart contracts and automation allow for new service expansion offerings.
“The POC was not tested for Sukuk offerings however the structuring of Sukuk offerings on a blockchain is an area which both the participants and ourselves would like to explore further,” Bursa Malaysia told IFN Fintech.
The Bursa Malaysia project involved multiple industry stakeholders including Securities Commission of Malaysia, Labuan Financial Services Authority, CIMB Investment Bank, Maybank Investment Bank and China Construction Bank Corporation Labuan Branch.
“The POC saw the industry taking its first step to explore the potential of blockchain and digital assets. With the completion of the first milestone, future phases will look towards further collaboration, co-development and implementation of new technology to expand the Malaysian capital market and empower discoveries of new opportunities,” noted the exchange.