29 May 2023 – Singapore Blockchain Innovation Programme (SBIP), hosted by the National University of Singapore (NUS) School of Computing, and InterOpera have successfully completed a nine-month Proof of Concept (PoC) with InterOpera to develop a model of interoperability for regulated capital markets, to tackle cross-chain connectivity while automating regulatory requirements in capital markets. This potentially optimises existing capital market transactions by lowering operational costs, increasing market liquidity, and creating new investment options.
Collaboration between SBIP and InterOpera
Research Assistant Professor Dumitrel Loghin and Dr Minh Ho from NUS School of Computing met the InterOpera team in June 2022, and held bi-weekly meetings with them at NUS to discuss various aspects of the project, such as the Capital Markets Protocol (CMP).
Will Lee, CEO of InterOpera, shared his thoughts on the collaboration, “We are at the forefront of Regulated DeFi, revolutionising the industry by bridging the divide between traditional crypto-based DeFi and regulatory compliance. Our innovative approach integrates business and regulatory requirements into cross-blockchain transactions, enabling atomic transactions through smart contracts and catering to regulators’ and business operators’ needs. Collaborating with NUS SBIP, our ground-breaking research is poised for commercialisation, transforming the DeFi landscape.”
Proof of Concept
Under the support and guidance of Professor Ooi Beng Chin, the Programme Lead for SBIP, InterOpera focused on developing an innovative form of interoperability between two private (and possibly public) chains using an innovative design combining CMP and other communication protocols. The PoC resulted in the development of a simple trading module to validate and facilitate the transfer of assets between transacting parties.
Professor Ooi emphasised the significance of this PoC, stating, “The success of InterOpera’s project demonstrates the potential of blockchain technology in addressing complex challenges in the capital markets sector. Our collaboration showcases the benefits of combining industry expertise with cutting-edge research to drive innovation.”
Impact of CMP on Capital Markets
The prototype simulates CMP via a three-party transaction on the Cosmos chain, while leveraging on unique interoperability architecture to ensure a single source of truth. The CMP is a cross-chain communication protocol designed from pen and paper and tailored for regulated capital markets, aiming to tackle the issues faced in traditional capital market processes, such as the lack of transparency, standardisation, automation, and interoperability.
By utilising zero-knowledge oracles, and smart contracts, CMP automates regulatory verifications and enables a more efficient and cost-effective capital market ecosystem. This successful PoC by SBIP and InterOpera serves as an excellent example of what industry collaboration can achieve.
About Singapore Blockchain Innovation Programme (SBIP)
SBIP is a collaborative and nationwide technical community. It helps local businesses in adopting blockchain by providing industrial infrastructure support. Since its founding in December 2020, the programme has been utilising three key strategies to facilitate the adoption of blockchain systems for real-world applications:
- Engaging local companies: SBIP will engage close to 75 companies by 2023 to conceptualise blockchain-related projects and pioneer innovative business solutions.
- Growing Singapore’s blockchain community: To help local ICT companies tap on blockchain technology, SBIP will nurture Singapore’s blockchain tech talent pool.
- Researching on next-generation blockchain: SBIP will undertake research efforts that focus on two key thrusts – Blockchain Scalability and Blockchain Interoperability.
SBIP is a collaboration with local institutions: National University of Singapore (NUS), Enterprise Singapore (ESG), Infocomm Media Development Authority (IMDA), National Research Foundation Singapore (NRF), Monetary Authority of Singapore (MAS), ST Engineering, Government Technology Agency of Singapore (GovTech), Agency for Science, Technology and Research (A*STAR), Nanyang Technological University (NTU), Singapore Management University (SMU), and Singapore University of Technology and Design (SUTD). Its projects are backed by well-recognised research from the Database System Research Lab under NUS School of Computing.
For further information, please contact us at www.sbip.sg or email: contact@sbip.sg.
