NUS Pilots Market First Green Bond Report Tokenization Initiative with Northern Trust and UOB By Investing.com

The pioneering initiative uses blockchain for greater transparency in ESG reporting and is part of MAS’s Project Guardian

SINGAPORE–(BUSINESS WIRE)–The National University of Singapore (NUS), Northern Trust and UOB are proud to announce a groundbreaking collaboration to launch the market’s first green bond credential tokenization initiative. NUS is the first university in Singapore to implement blockchain technology for environmental, social and governance (ESG) reporting.

This announcement contains multimedia. See the full press release here: https://www.businesswire.com/news/home/20250112348353/en/

This initiative, a key milestone in green finance innovation, will leverage blockchain technology to increase transparency, data integrity and investor confidence in sustainable investment practices.

Based on best market practice, green bond issuers regularly inform investors about the use of funds. For their part, investors may require such data for their own sustainability reporting obligations and to assess their progress towards their ESG goals.

As part of the initiative, Northern Trust will use its cutting-edge digital asset platform, Northern Trust Matrix Zenith™, to mint and hold green bond reporting tokens. The token will contain environmental reporting data from NUS’s third green bond, issued in 2023. UOB, as lead arranger of the bond issue, will solicit and provide key feedback on how tokenized data can improve investors’ sustainability reporting practices.

The tokenization process will focus on ensuring data integrity, giving investors confidence that environmental reporting data is secure, immutable and reliable for their own sustainability reporting obligations. Bond investors will receive the same complete set of information that will remain unchanged even when the bond changes hands. This initiative marks a significant step towards aligning green finance practices with global transparency and regulatory standards.

The tokenization of NUS green bond credentials is part of the Guardian Project, a global collaboration between policymakers and key industry players led by the Monetary Authority of Singapore to increase the liquidity and efficiency of financial markets through asset tokenization. It falls under the fixed income workflow of the Guardian project, which is aimed at demonstrating the benefits of tokenizing bonds and other fixed income securities.

Collaborative expertise

Mr. Tan Kian Woo, Senior Vice President and Chief Financial Officer at NUS said: We are proud to lead this first green bond report tokenization initiative in the market in partnership with Northern Trust and UOB. This project is a significant milestone in our ongoing commitment to advancing green finance innovation. By creating a token that improves the integrity and transparency of our environmental data, we aim to provide greater confidence to investors, helping them meet their sustainability reporting goals. This is just the beginning, as we continue to push the boundaries of sustainable financial practices.

Mr Koh Yan Leng, Vice President (Campus Infrastructure) at NUS said: In our quest to drive campus decarbonisation, we are equally committed to reporting on the sustainability of our green buildings in a transparent, timely and reliable manner. Through this project, investors and stakeholders will gain access to rapid updates to support their sustainability reporting needs. It also reflects NUS’ ongoing efforts to optimize energy use and reduce carbon emissions across our campuses.

Mr Justin Chapman, Global Head of Digital Assets and Financial Markets at Northern Trust, said: This initiative is a testament to the transformative potential of blockchain technology in green finance. Using our Matrix Zenith™ platform, we ensure the integrity and transparency of green bond reporting data, addressing critical investor needs while paving the way for a more sustainable financial ecosystem.

Mr Edmund Leong, 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 aim to provide real-world feedback on the usability of tokenized data, ensuring that it meets the standards required for transparent and reliable sustainability reporting.

Encouraging green finance innovation

The Green Bond Reporting Token is the first step in NUS’s broader strategy to explore how blockchain technology can improve green finance practices through a three-year Memorandum of Understanding (MoU) signed with Northern Trust in November 2024. The collaboration will focus on driving cutting edge – advanced research and development of actionable solutions to address the challenges of ESG financing.

As part of its commitment to leading green finance innovation, NUS will continue to explore opportunities to leverage tokenization to improve transparency, accountability and impact in the sustainable finance sector.

For more information on NUS’ green finance initiatives, visit https://sustainability.nus.edu.sg/campus/green-finance/.

About the National University of Singapore (NUS)

The National University of Singapore (NUS) is Singapore’s leading university offering a global approach to education, research and entrepreneurship, with a focus on Asian perspectives and expertise. We have 16 colleges, universities and schools across three campuses in Singapore, with more than 40,000 students from 100 countries enriching our vibrant and diverse campus community. We have also established more than 20 NUS Overseas Colleges Entrepreneurship Centers around the world.

Our multidisciplinary approach to education, research and real-world entrepreneurship enables us to work closely with industry, governments and academia to address key and complex issues relevant to Asia and the world. Researchers in our faculties, research centers of excellence, corporate laboratories and more than 30 university-level research institutes focus on topics that include energy; environmental and urban sustainability; treatment and prevention of diseases; active aging; advanced materials; risk management and resilience of financial systems; Asian Studies; and smart nation capabilities such as artificial intelligence, data science, operations research and cyber security.

For more information about NUS, visit nus.edu.sg.

About Northern Trust

Northern Trust Corporation (Nasdaq: NASDAQ: ) is a leading provider of wealth management, asset servicing, wealth management and banking services to corporations, institutions, high net worth families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 US states and Washington, DC, and 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2024, Northern Trust had assets under supervision/administration of $17.4 trillion and assets under management of $1.6 trillion. For more than 135 years, Northern Trust has earned recognition as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us at northerntrust.com. Follow us on X (formerly Twitter) @NorthernTrust or Northern Trust Corporation on LinkedIn.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 USA, incorporated with limited liability in the USA Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and- conditions.

About UOB

UOB is the leading bank in Asia. Operating through its head office in Singapore and banking subsidiaries in China, Indonesia, Malaysia, Thailand and Vietnam, UOB has a global network of approximately 500 offices in 19 countries and territories in the Asia Pacific region, Europe and North America. Since its founding in 1935, UOB has grown organically and through a series of strategic acquisitions. Today, UOB is among the world’s best banks: Aa1 according to Moody’s (NYSE:) Investors Service and AA- according to S&P Global Ratings and Fitch Ratings.

For almost nine decades, UOB has adopted a customer-centric approach to create long-term value by staying relevant through its entrepreneurial spirit and doing right by its customers. UOB is focused on building the future of ASEAN for and connecting people and businesses within ASEAN.

The bank connects businesses with opportunities in the region through its unmatched regional footprint and uses data and insights to innovate and create personalized banking experiences and solutions that meet the unique needs and preferences of each customer. UOB is also committed to creating a sustainable future by working with its stakeholders to create a positive impact on the environment, encourage social inclusion and strive for economic progress. UOB believes in being a responsible provider of financial services and is unwavering in its support of the arts, children’s social development and education, doing right by its communities and stakeholders.

See the original version on businesswire.com: https://www.businesswire.com/news/home/20250112348353/en/

For media inquiries, please contact:

For NUS
Gayathri DE SILVA
Office of University Communications
National University of Singapore
DID: +65 6601 1341
Email: gayathri.desilva@nus.edu.sg

For Northern Trust
John O’Connell
Northern Trust
DID: +1 847-510-3334
Email: John_O’Connell@ntrs.com

For UOB
Jonathan KWOK
Group strategic communications and brand
UOB
DID: +65 6539 4062
Email: Jonathan.Kwok@UOBGroup.com

Source: Northern Trust Corporation