Bursa Malaysia, the nation’s stock exchange based in Kuala Lumpur, has made a statement revealing that it is developing a securities borrowing and lending Proof-of-Concept (PoC) that is powered by blockchain technology.

Cointelegraph reported that the move is aimed at enhancing security and transparency in the financial system, while upgrading the practice of borrowing and lending securities in the country.

Bursa Malaysia CEO Datuk Muhamad Umar Swift said the PoC powered by blockchain technology will improve efficiency and speed in order to address greater demand for the service and that the decentralized ledger technology will offer new experiences in the financial system.

“The collaboration also benefits the wider industry through new knowledge, insights and practical experience in harnessing digital innovation to support and drive the growth of the capital market,” Swift said.

English-language local media Bernama reported that the move is the first time that blockchain has been implemented in a member state of the Association of Southeast Asian Nations.

The news outlet added that the PoC is a collaboration of Bursa Malaysia with Forms Syntron Information, a tech firm based in Hong Kong. Other parties working on the blockchain project include CIMB Investment Bank Bhd., Citibank Bhd., Retirement Fund Incorporated, Affin Hwang Investment Bank Bhd., and Malacca Securities.

Stock exchanges worldwide are reportedly more open to the adoption of blockchain technology. Cointelegraph reported that the CEO of the London Stock Exchange had earlier stated that blockchain could have a use in issuing securities and settlement.

Source: cointelegraph.com

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