Kuala Lumpur-based stock exchange Bursa Malaysia is now interested in a blockchain-powered proof-of-concept (PoC) platform involving the securities borrowing and lending (SBL) market, Bernama reported.
The idea is that blockchain will help with the overall transparency of financial markets. The chief executive officer (CEO) of Bursa Malaysia, Datuk Muhammad Umar Swift, emphasized the need for enhanced speed and efficiency in the modern financial world, stating: “The power of blockchain technology can create a considerable impact. 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.” There are many believe that this one initiative is the first step in Bursa Malaysia further exploring how blockchain can improve its operations in general.
Swift also pointed out that this was not only important for the markets, but for the country itself. He indicated that blockchain can change the way that many businesses operate, stating: “Digital technologies such as blockchain can not only create powerful information systems, but also bring about a fundamental shift in how the market works, thinks and hires.”
The initiative was made possible through a partnership with Hong Kong-based Form Syntrons Information. It will involve Citibank subsidiary Citibank BhD, Affin Hwang Investment Bank BhD, Retirement Fund Incorporated, and more. Swift also believes that Malaysia is the perfect place to test the technology, considering the “growth potential of Malaysia’s SBL market.” The Malaysian economy just reached a new all-time high of RM1.45 trillion in 2018.
This is not the first time that China and Malaysia have partnered up in hopes of exploring the potential of blockchain technology. It was announced several weeks ago that the government of China is supporting a project that will create a “blockchain city” in the Malaysian Malacca Straits. China hopes to make the city a top tourist destination, estimating that somewhere around 3 million tourists will begin visiting the city. It was also recently announced that Domino’s Malaysia will apparently be utilizing blockchain to enhance delivery efficiency.
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