The Singapore Stock Exchange (SGX) and its subsidiary Temasek Heliconia Capital Management have invested in a capital market platform called iSTOX.
The platform, designed by the ICHX Tech infrastructure based on blockchain technology, aims to deliver fast publishing time and a high level of transparency for users.
While iSTOX incorporates blockchain and smart contract technology, it is not an encryption exchange as all versions will be purchased and sold with the fiat currency.
Mr. Chew Sutat, SGX's executive vice president and chief executive officer, and Chua Kim Leng, former Special Adviser (Financial Supervision) and Assistant Chief Executive Officer of the Singapore Monetary Authority (MAS).
ICHX Tech is working to obtain a license from MAS as a recognized market operator.
The iSTOX platform will be up and running after MAS licenses, according to yesterday.
"ISTOX will be in a good position at the forefront of a new era to raise funds through the use of security contracts," they added.
These are financial securities that offer flexible issuing structures and can be supported by a variety of underlying assets, including company shares or debts.
ICHX Tech Managing Director Danny Toe said: "iSTOX presents a more flexible, inclusive and efficient platform that we believe will benefit significantly both companies wishing to raise capital and investors looking for investment opportunities.
"In this way, we aim to offer a future fund-raising platform that offers significant benefits to complement existing capital market mechanisms."
SGX's Chew said: "As capital markets evolve, companies will look for new ways of financing to suit their different stages of growth and business needs.
"In order to promote Singapore's position as a global financial hub, we need innovative solutions that push the limits and set new benchmarks. We believe this new platform from iSTOX will add to the vibrancy of Singapore's capital market ecosystem."
Heliconia Capital Management CEO Derek Lau said: "We see iSTOX as a potential disrupter in traditional capital markets.
"It is more interesting that we now have the opportunity to offer small and medium-sized businesses the alternative for raising capital and liquidity, surpassing traditional stock exchanges."