SGX FX, the foreign exchange division of the Singapore Exchange Group, has announced a partnership with Chainlink, a leading oracle platform known for its role in decentralized finance (DeFi). This collaboration will enable SGX FX to distribute its over-the-counter (OTC) currency data across various blockchain networks, utilizing Chainlink’s DataLink service, specifically designed for institutional data providers.
The integration will initially offer spot and one-month forward prices for major G10, Asian, and emerging market currency pairs, thereby extending SGX FX’s market data availability to over 2,600 applications found on more than 75 distinct blockchains. This vast reach underscores Chainlink’s established infrastructure rather than any confirmed clientele for the new service.
Developers focused on creating tokenized assets, structured products, and hedging tools on public blockchains will have access to this data, enhancing their ability to innovate in the evolving financial landscape. Hugh Whelan, Head of Liquidity Management and Data at SGX FX, highlighted that the partnership will support new workflows while maintaining the robust standards expected by their users.
Whelan, who joined SGX FX after a lengthy career at NEX Group, stated that as markets evolve, users are increasingly seeking flexibility in accessing reliable data. This move comes amid a broader trend where other institutional data providers have begun connecting FX prices to decentralized markets. Noteworthy efforts include Devexperts’ subsidiary, dxFeed, which launched a Chainlink oracle node in April 2021, and New Change FX, which followed suit later that year.
Also noteworthy is the emergence of competitors like the Pyth Network, which has been attracting institutional participants to its alternate on-chain pricing layer. For example, B2C2, a cryptocurrency market maker, became involved with Pyth to integrate proprietary pricing into more than 600 decentralized applications.
What distinguishes SGX FX from earlier attempts at FX-on-chain initiatives is its robust business foundation, stemming from its $125 million acquisition of the MaxxTrader platform in 2021. SGX FX now competes against major market venues like CME-owned EBS and LSEG-controlled FXall. Recent financial reports indicate a significant increase in SGX’s OTC FX net revenue, which rose by 35.7% to S$55 million.
Chainlink has been working to establish itself as a bridge between traditional financial markets and tokenized ecosystems. Recent developments have seen partnerships like that of Japan’s SBI Group, which aims to tokenize real estate and bond assets, and the Abu Dhabi Global Market, which signed a memorandum of understanding with Chainlink to explore compliant tokenization frameworks.
Fernando Vazquez, President of Capital Markets at Chainlink Labs, remarked that SGX FX’s adoption represents a significant step in merging on-chain finance with the world’s largest markets. However, the demand for OTC FX data on decentralized finance platforms remains uncertain, as most tokenized asset initiatives have primarily focused on areas like US Treasuries and equities.
On-chain trading volumes for currencies are still comparatively low, generating only a fraction of the daily turnover in traditional forex markets, which stands at around $7.5 trillion. Nonetheless, SGX FX’s partnership with Chainlink signals a continuing expansion for the platform. Recently, SGX FX incorporated BBVA’s Latin American currency pricing into its distribution engine and onboarded Middle Eastern broker ADSS as a market maker.
Moreover, SGX FX facilitated BBVA’s entry into the crypto trading space, enabling the bank to become the first in the EMEA region to provide 24/7 retail trading of cryptocurrencies such as Bitcoin and Ether. This initiative, too, leverages the same infrastructure that SGX FX uses for its traditional currency pricing distribution.
Details regarding pricing, specific on-chain clients, and revenue-sharing arrangements between SGX FX and Chainlink have yet to be disclosed.
