The Monetary Authority of Singapore (MAS) has announced a partnership to expand initiatives relating to asset tokenization. The partnership involves collaboration with the financial industry aiming to expand and develop foundational capabilities to scale tokenised markets. Under Project Guardian, the authority is initiating these actions to accelerate the adoption of digital assets by institutions.
More on Project Guardian, MAS stated that the 17 financial institutions serving as an industry group for Project Guardian have initiated testing of use cases with five additional industry pilots. The newly added include Citi, T. Rowe Price Associates, Inc., Fidelity International, BNY Mellon and OCBC, Ant Group, Franklin Templeton, J.P. Morgan, and Apollo. These industry pilots will be testing different aspects of the use cases. However, J.P. Morgan and Apollo made their collaboration public before MAS’s announcement.
Furthermore, MAS announced the launch of a new funds workstream within the Project Guardian industry group in collaboration with the Accounting and Corporate Regulatory Authority (ACRA). This particular initiative focuses on issuing Variable Capital Company (VCC) funds on digital asset networks.
The authority is also looking to introduce an open, digital system that will host tokenized financial assets and applications. MAS named this “Global Layer One (GL1),” and said it “will facilitate seamless cross-border transactions and enable tokenized assets to be traded across global liquidity pools while meeting relevant regulatory requirements and guidelines.” MAS is working on this initiative with international policymakers and financial institutions.
Mr. Leong Sing Chiong, Deputy Managing Director in the Markets and Development at MAS, said that “GL1 will provide a foundational digital backbone and bring markets together with similar principles of openness and accessibility as the public internet.”
Alongside MAS, the financial industry is looking to develop an Interlinked Network Model (INM). This aims to offer a common framework that enables the exchange of digital assets without the need to be on the same network.
MAS has also welcomed the staff of the International Monetary Fund (IMF) to Project Guardian’s policymaker group. According to MAS, the IMF will provide an international perspective on the policies and legal issues.
The Deputy Managing Director also mentioned that Project Guardian’s industry pilots demonstrate that tokenized financial assets can be traded, distributed, and settled seamlessly across borders.
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