National University of Singapore (NUS) in partnership with Northern Trust UOB We are launching a first-of-its-kind initiative to track green bond credentials using blockchain technology.
The move aims to increase transparency and trust in ESG (environmental, social and governance) reporting in the financial sector.
NUS, the first university in Singapore to adopt blockchain for ESG reporting, has issued its third green bond in 2023.
Through this initiative, information about the environmental impact of bonds will now be securely stored and tracked using Northern Trust’s digital asset platform, Matrix Zenith.
The tokenization process ensures that investors receive the same complete, tamper-proof data even if a bond changes hands, increasing confidence in the integrity of the information.
UOB, the lead arranger of the bonds, will provide feedback on how this tokenized data can improve investor practices.
The project is part of Project Guardian, an initiative led by the Monetary Authority of Singapore to explore the benefits of asset tokenization in financial markets.
NUS sees this as the first step in a broader strategy to leverage blockchain technology to improve transparency and accountability in sustainable finance.
The University signed a three-year agreement with the Northern Trust in November 2024 to further this goal.
Tan Kian Woo, Senior Vice President and Chief Financial Officer of NUS, said:
“We are proud to partner with Northern Trust and UOB to lead the market’s first green bond report tokenization initiative. This project builds on our continued commitment to driving green financial innovation. This is an important milestone in our efforts.
By creating a token that increases the integrity and transparency of our environmental data, we aim to provide additional confidence to our investors and help them achieve their sustainability reporting goals. We continue to push the boundaries of sustainable financial practices and this is just the beginning. ”
Edmond Leon, Head of Group Investment Banking at UOB, said:
“At UOB, we are committed to driving sustainable financial solutions that meet the evolving needs of our clients.
By participating in this data tokenization initiative, we are providing real-world feedback on the usefulness of tokenized data and ensuring the standards needed for transparent and reliable sustainability reporting. We aim to satisfy. ”
Featured image credit: Edited from freepic
