Industry Collaborators Support DLT-Enabled Bond Lifecycle Management Solution
UBS, Bursa Malaysia and UnionBank lend their expertise to proof of concept by STACS and Deutsche Bank
UBS, Bursa Malaysia and Union Bank of the Philippines have joined Hashstacs (STACS) and Deutsche Bank as industry collaborators in their proof of concept on the use of distributed ledger technology (DLT) for digital assets and obligations related to sustainable development.
The three industry participants brought their expertise to a DLT-enabled bond lifecycle management solution called Project Benja for the financial industry.
Sharing his perspective as an arranger and bond investor, UBS provided insight into primary market workflows, ESG and green bond formats, including sustainability bonds, and consumer preferences. ESG-focused investors. The bank also focused on payment interoperability and explored the viability of a range of digital payment and settlement methods.
Bursa Malaysia examined the possibilities of a blockchain-powered central securities depository that enables efficient and orderly maintenance of records, which could generate considerable value and opportunities for the industry, keeping in mind that the Fragmentation of information from different legacy systems used in the financial industry was raised by all collaborators as a major issue.
As a leading financial institution in the Philippines and a leader in the digital space, UnionBank shared its expertise as a cross-border bond issuer, covering the current issues issuers face in the traditional financial infrastructure of capital markets, requirements for cross-border issuance, as well as social inclusion and financing of micro, small and medium enterprises.
With contributions from industry collaborators, the practicality, interoperability, relevance, sustainability and effectiveness of the solution created by STACS and Deutsche Bank to simplify global markets in a sustainable and inclusive manner is validated and strengthened .
Deutsche Bank and STACS announced the completion of the Benja project on May 18.
Hugo van Kattendijke, Head of Financial Intermediaries for Asia-Pacific at UBS Wealth Management, says: “Not only does this proof of concept describe a core ecosystem for DLT bond issuance and lifecycle management, but it is also an accessible model for the sector. in the development of concepts in real business transactions. Particularly exciting is the focus on ESG, an area where DLT only enables data-rich products, such as sustainability bonds, to deliver significant additional value to customers.
Catherine Casas, Senior Vice President and Head of the Blockchain Center of Excellence at UnionBank, adds: “DLT is the foundation for creating capital markets that work for everyone. It enables small businesses to borrow, instills investor confidence through transparency, and provides real-time asset trading and settlements across borders so everyone, whether it’s an investor or borrower, can access opportunities from around the world through truly inclusive capital markets. “