Malaysia Completes Proof-of-Concept for Blockchain-based SBL

Asia Blockchain Review
November 10, 2019

Bursa Malaysia Berhad has completed its first blockchain-based proof-of-concept (PoC) for securities borrowing and lending (SBL), furthering the country’s ambitions as a developed capital market.

The blockchain-powered solution was executed and tested with Bursa Malaysia Bhd’s tech partner Forms Syntron Information (HK) Ltd. and industry collaborators including Malacca Securities Sdn Bhd, Kumpulan Wang Persaraan (Diperbadankan), Citibank Bhd, CGSCIMB Securities Sdn Bhd, and Affin Hwang Investment Bank Bhd.

Blockchain Fosters Vibrant SBL Market

Datuk Muhamad Umar Swift, CEO of Bursa Malaysia, has pointed out that one of the key characteristics of a developed capital market is a vibrant SBL market driven by new technologies.

“As such, it is imperative that we tackle the operational challenges of today with a technologically driven solution that is flexible and scalable into the future. The PoC also brings in new knowledge, insights and practical experience in harnessing digital innovation – a core requirement of any exchange that aims to be a leader in its space in the future,” he said.

An agile methodology was utilized to develop and test ‘SBL PoC 1’, the first of its kind in Southeast Asia. The blockchain solution is expected to increase efficiencies, transparency, and trust in the SBL market with smart contracts and secure, shared ledgers. The ledgers store immutable, traceable, and auditable information, such as order confirmations and trade negotiations.

Transforming SBL in Malaysia with Blockchain

In addressing challenges in the Malaysian SBL market, emerging technologies such as blockchain has been adopted, with SBL PoC 1 as the start of the country’s long-term plan to develop the market. SBL PoC 1 is hoped to pave the way for developing and testing blockchain-enabled solutions to transform the Malaysian SBL market in the future.

Bursa Malaysia Bhd is seeking more partners and collaborators to develop future PoCs as part of its roadmap for achieving a developed SBL market.


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Rohan Hall Talks DX and Covid-19
    Asia Blockchain Review recently caught up with Rohan Hall about his company, Vottun, and its solutio...

    July 15, 2020

    Vottun’s Solution To Reopen Sports Amidst Covid-19
    Vottun recently unveiled its Blockchain-backed COVID-19 Test Result Verification to Help Sports Reop...

    July 15, 2020

    Uncertainty Is The New Normal For APAC Fintech Players
    Asia Blockchain Review had the opportunity to talk to Celeste Goh, Fintech Analyst at S&P Global Mar...

    July 13, 2020

    It’s No Surprise : Celeste Goh On APAC’s Fintech Funding Dip
    It was reported recently that the APAC fintech funding scene had experienced quite a slump. Asia Blo...

    July 12, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us