Ledgerwave Secures Regulatory Approval to Offer Tokenised Bond Settlement in Singapore
The approval allows institutional clients to settle corporate bond trades on Ledgerwave's permissioned network in minutes rather than two days.
SINGAPORE β Ledgerwave has received regulatory approval to operate a tokenised bond settlement service for institutional clients in Singapore. The service settles corporate bond trades on a permissioned distributed ledger in minutes, compared with the two-day cycle common today.
How it works
Bonds are issued as digital tokens with the legal terms embedded, and cash legs settle through a regulated digital-cash facility. Both sides of the trade are completed at the same moment, removing settlement risk and reducing the collateral participants must hold.
"Faster settlement is not about novelty, it is about freeing up capital," said Wei Lin Tan, Chief Executive of Ledgerwave. "Every day a trade sits unsettled is a day that money cannot work."
Launch partners
Three regional banks and two asset managers will use the service from launch, with the first live issuance expected within the quarter.
About Ledgerwave
Ledgerwave provides settlement infrastructure for regulated financial institutions and is headquartered in Singapore.
