Malaysia to Develop Blockchain for Borrowing and Lending Securities

Asia Blockchain Review
May 19, 2019

Malaysia’s stock exchange, Bursa Malaysia, has been working on a blockchain-enabled securities borrowing and lending Proof-of-Concept (PoC).

As reported by Cointelegraph, the initiative is seeking to facilitate greater transparency and tackle other challenges associated with borrowing and lending securities in the country.

Datuk Muhamad Umar Swift, the exchange’s CEO, reportedly said the PoC should boost the efficiency, speed, and capacity of the aforementioned services, thereby fostering greater demand.

He added that the benefits of the PoC will not be limited to only Bursa Malaysia customers, stating that the partnership will also benefit the wider industry through “new knowledge, insights and practical experience in harnessing digital innovation to support and drive the growth of the capital market.”

According to the local Bernama news outlet, this is the first such initiative undertaken by a member state of the Association of Southeast Asian Nations (ASEAN).

The PoC has reportedly been developed in collaboration with the stock exchange’s technology partner, Hong Kong-based Forms Syntron Information, with the involvement of Affin Hwang Investment Bank Bhd., CIMB Investment Bank Bhd., Citibank Bhd., Retirement Fund Inc., and Malacca Securities.

Nikhil Rathi, CEO of the London Stock Exchange one of the oldest stock exchanges in the world recently said blockchain technology could be useful in issuing securities and settlement.

Meanwhile, news broke in March that Bolsas y Mercados Españoles (BME), a major Spanish stock market operator, had completed its first blockchain pilot for electronic certificates of collateral pledges.

That pilot, implemented together with investment services firm Renta 4 Banco, aimed to eliminate the use of physical certifications by digitizing all processes while providing networking participants with real-time access to information.


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
    Blockchain Enables Verification of COVID-19 Immunity
    Given the virus is not going to disappear in a hurry and we are some time away from vaccinating the ...

    November 21, 2020

    Illicit Cryptocurrency Activity: A Concern
    Market regulators such as SEC has accepted cryptocurrencies as a financial instrument and are consta...

    November 20, 2020

    IBM Using Blockchain to Help Businesses Reopen during COVID-19
    IBM’s healthcare unit, IBM Watson recently announced that they will soon be launching an app to supp...

    November 20, 2020

    Canadian Pacific Railway Collaborates with TradeLens
    Canadian Pacific Railway recently collaborated with TradeLens in a bid to improve its efficacy as an...

    November 19, 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