Singapore Drives Asset Tokenization Campaign with New Pilots

• Singapore has expanded its asset tokenization initiative.
• MAS launched new pilots to test potential use cases.
• Other MAS-led initiatives for expanding asset tokenization markets were also announced.

Singapore is fast-tracking its plan to catalyze the institutional adoption of digital assets under its Project Guardian initiative.

Project Guardian is a regulator-led collaborative initiative bringing together policymakers and financial industry heavyweights to test the feasibility of decentralized finance (DeFi) and asset tokenization use cases while managing risks to financial stability and integrity.

The initiative encompasses 17 financial institutions and a policymaker group of four, including the UK’s Financial Conduct Authority (FCA) and Japan’s Financial Services Agency (FCA).

Project Guardian Initiates Five Asset Tokenization Pilots

On November 15, the Monetary Authority of Singapore (MAS) announced that Project Guardian has initiated five additional pilots to test viable asset tokenization use cases.

Per the press release , these pilot tests potentially pave the way for integrating asset tokenization across the capital markets value chain, including listing, trading, settlement, distribution, and asset servicing.

Under the newly launched initiative, J.P. Morgan and Apollo will collaborate on asset servicing while BNY Mellon and OCBC explore a cross-border FX payment solution across a heterogeneous network.

While Citi, T. Rowe Price Associates, Inc., and Fidelity International will test real-time post-trade reporting and analytics of digital asset trades, Ant Group and Franklin Templeton will explore a treasury management solution and the issuance of a tokenized money market fund through a Variable Capital Company (VCC) structure, respectively.

Besides the pilot programs, MAS has more plans to scale tokenized markets under a worldwide digital infrastructure dubbed the Global Layer One (GL1).

The Global Layer One (GL1) Infrastructure

In the November 15 announcement, MAS revealed that it’s collaborating with international policymakers and financial institutions BNY Mellon, DBS, JP Morgan, and MUFG to explore the design of GL1.

Leong Sing Chiong, Deputy Managing Director (Markets and Development), MAS, shared GL1’s vision and potential.

GL1 is a digital infrastructure that aims to facilitate seamless cross-border transactions and tokenized asset transfers while observing relevant regulatory guidelines and requirements.

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