The Monetary Authority of Singapore (MAS) has announced that it is leading a significant expansion in asset tokenisation initiatives. This move, part of Project Guardian, aims to bolster the institutional adoption of digital assets, enhance market efficiencies, and unlock new investment opportunities.
Under Project Guardian, 17 financial institutions have embarked on five new industry pilots, delving into various aspects of asset tokenization. These pilots cover a spectrum of functions in the capital markets, from trading to settlement, potentially revolutionizing the sector.
Key highlights include:
Innovative Trading Solutions: Citi, T. Rowe Price, and Fidelity International are exploring advanced mechanisms for efficient digital asset trading and analytics.
Cross-border Payment Innovations: BNY Mellon and OCBC are testing a novel FX payment solution to facilitate secure transactions across diverse networks.
Enhanced Treasury Management: Ant Group is trialling a treasury management solution in Singapore, aimed at improving global liquidity management.
Tokenized Fund Issuance: Franklin Templeton is investigating the issuance of a tokenized money market fund, leveraging digital asset networks.
Digital Asset Management: J.P. Morgan and Apollo are collaborating to integrate digital assets in portfolio management, aiming to streamline asset servicing and customization.
Fostering Native Digital Fund Issuance
MAS is initiating a new funds workstream within Project Guardian to focus on the native issuance of Variable Capital Company (VCC) funds on digital asset networks. This initiative will explore various aspects, including taxation and policy implications, to enhance asset manager distribution channels.
Global Layer One
MAS, in collaboration with global financial institutions, is pioneering the Global Layer One (GL1) initiative. This aims to create an open, digital infrastructure hosting tokenized financial assets, enabling seamless global transactions while adhering to regulatory standards.
Interlinked Network Model
The MAS is also developing the Interlinked Network Model (INM), a common framework for digital asset exchange across independent networks. This model, detailed in the newly published whitepaper “Interlinking Networks”, promises to enable more efficient cross-network transactions.
The International Monetary Fund (IMF) has joined the policymaker group of Project Guardian, contributing an international perspective to the project. This group plays a crucial role in shaping policies for cross-border digital platforms and maintaining monetary system stability.