Standard Chartered continues its push for expansion in the Asian region with the launch of its “Libeara” blockchain platform for the tokenization of traditional financial instruments.
What is Libeara
According to NikkeiAsia, Libeara aims to support financial institutions in the digitization of their assets and integrating them on the blockchain. The system takes away their dependency on intermediaries in trading such instruments, hence, raising their efficiency and lowering the cost associated with the transactions.
Standard Chartered’s new blockchain unit is also partnering with FundBridge Capital. The alliance is expected to roll out a tokenized Singapore Dollar Government Bond Fund tailored for professional investors. The reasoning behind this requirement has to do with the higher net worth and understanding of these individuals when it comes to investing. There’s no timeframe yet about the availability of the service because it is still awaiting approval from Singaporean regulators.
How It Works
FundBridge CEO Sue Lynn Lim stated that the new blockchain solution expands the investment opportunities of clients by allowing them to subscribe and redeem tokenized units of the Singapore Dollar Government Bond Fund. The tokens managed under the Standard Chartered distributed ledger tech (DLT) provide lower costs, enhanced transparency, and more efficiency for the operators.
Libeara can utilized by investors to straight-up subscribe to tokenized government-issued bonds in various denominations. The tokens can be stored and managed directly in digital wallets plus they can either be transferred or redeemed via blockchain tech.
The startup wholly owned by the UK bank looks forward to tapping central banks and government treasuries to extend the reach of its solution for bond tokenization.
“From an emerging market perspective, there are pockets of jurisdictions where a token-form government bond can actually decrease the cost of owning and having one. This is the type of infrastructure that we want to build and be able to supply to funds, to countries.”Aaron Gwak, Libeara’s CEO
Standard Chartered’s Crypto Exposure in Asia
Prior to its asset tokenization venture, Standard Chartered acquired the majority stakes in both Zodia Custody and Zodia Markets. The former is a digital asset custody firm while the latter offers a crypto exchange for institutional customers. Zodia Custody is currently setting its crosshairs in Hong Kong.
In addition, Standard Chartered is looking to launch another crypto custodian arm in Japan for institutions. This comes hot on the heels of its announced partnership with Japan’s SBI Digital Asset Holdings back in February.
The aggressive expansion of Standard Chartered in Asia follows the trend of banks looking for greener pastures in the East for their blockchain projects amidst the concerning regulatory scrutiny in the US, Europe, and other major markets that remain anchored on the outdated protocols of traditional finance.