The Monetary Authority of Singapore (MAS) has announced sealing a partnership with key financial entities. The entities in the partnership include the Financial Services Agency of Japan (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the United Kingdom’s Financial Conduct Authority (FCA). This collaboration seeks to promote digital asset pilot programs.
MAS digital asset pilots are set to cover fixed income, foreign exchange, and asset management products. Also, MAS has gone ahead to conduct pilots on asset tokenization in the mentioned areas. This industry pilot is forging with the collaboration of 15 financial institutions under MAS’ Project Guardian.
Project Guardian according to MAS is a “collaborative initiative with the financial industry that seeks to test the feasibility of applications in asset tokenization and DeFi while managing risks to financial stability and integrity.” Further, as the pilot programs advance, Project Guardian instituted a policymaker group including FSA, FCA, and FINMA to foster a closer inter-border collaboration between policymakers and regulators.
MAS also stated that the pilots carried out under Project Guardian have shown market and transaction efficiency via the use of tokenization.
The policymaker group’s objective is to Spearhead discussions on digital assets, spot potential risks and loopholes with existing policies and regulations, and formulate common standards and best practices for digital asset networks and the market. Moreover, exchange of knowledge and awareness among regulators and industry, is part of the group’s objective.
Additionally, MAS stated that the Policymakers group seeks to “promote high standards of interoperability to support cross-border digital assets development,” as well as, “Facilitate industry pilots for digital assets through regulatory sandboxes, where applicable.”
Following the partnership announcement, Mr Leong Sing Chiong, the Deputy Managing Director for MAS, said, the partnership with FSA, FCA, and FINMA demonstrates a strong desire among policymakers to deepen understanding of both opportunities and risks associated with digital asset innovation.
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