Securities Commission Malaysia (SC) is going to embark on a pilot project to explore the use of distributed ledger technology (DLT) in the unlisted and Over-The-Counter markets space.

SC Chairman Tan Sri Ranjit Ajit Singh made the announcement at the SC’s flagship fintech event, SCxSC Digital Finance Conference 2017. He outlined the progress made in digital markets since the commission revealed its Digital Markets Strategy.

Among a number of initiatives, Singh revealed the details on the DLT project. He said that the project findings will used as a basis for an industry blueprint.

Furthermore, SC is reviewing relevant regulations and guidelines to facilitate functional and effective use cases of digital assets in the capital market, including secondary market trading of established cryptocurrency and digital assets.

In September, SC signed an agreement with the Monetary Authority of Singapore (MAS) to foster closer cooperation on FinTech and innovation in financial services between Singapore and Malaysia. Both authorities also intended to consider participating in joint innovation projects that leverage technologies such as blockchain and distributed ledgers.