Northern Trust, an American financial service company, has signed a three-year Memorandum of Understanding (MoU) with the National University of Singapore (NUS) to advance green finance and accelerate the adoption of blockchain technology within environmental, social, and governance (ESG) reporting. This collaboration marks a significant milestone, positioning NUS as the first university in Singapore to implement blockchain for ESG-related data management.
The MoU also underscores Northern Trust’s commitment to integrating cutting-edge technology with sustainable investment practices. Through tokenising green assets, the partnership aims to improve the verification of ESG claims, helping both issuers and investors meet increasing regulatory demands and enhancing accountability in ESG portfolios
“We are delighted to collaborate with NUS on this important endeavour,” said Justin Chapman, Global Head of Digital Assets and Financial Markets at Northern Trust, adding, “By bringing the green credentials of bonds on-chain, we address the growing need for transparency and effective reporting in an ever-evolving green finance market. This is a pivotal step forward in utilising blockchain technology to support sustainable finance.”
The initiative aims to foster research and develop practical solutions to the challenges facing sustainable finance. A key component of the partnership is a tokenisation project that leverages Northern Trust’s Matrix Zenith platform. This will allow for the digitalisation of green bond credentials, bringing transparency and efficiency to investors who require robust regulatory reporting, while aligning with global sustainability standards.
Yen Leng Ong, Country Executive for Southeast Asia at Northern Trust, added: “This partnership represents a shared vision to drive transformative change in the financial sector. By collaborating with NUS, we aim to unlock new opportunities for sustainable investing, demonstrating how technology can support the global shift to a greener economy.”
The collaboration will also foster academic engagement through Northern Trust’s partnership with the Singapore Blockchain Innovation Programme (SBIP) at NUS’s School of Computing (SoC). The programme will involve research fellows and PhD candidates in developing blockchain solutions for sustainable finance, contributing to the development of talent in emerging financial technologies.
Tan Kian Woo, Senior Vice President and Chief Financial Officer of NUS, said: “We are excited about the potential of this partnership with Northern Trust. By combining our academic expertise with their advanced tokenisation platform, we are setting a new benchmark for innovation in green finance. Together, we are paving the way for a more sustainable financial future.”
