Singapore unveils Project Guardian to boost $3.3T tokenization
The Monetary Authority of Singapore (MAS) recently announced Project Guardian, an initiative to drive tokenization in the financial sector by forming commercial networks for tokenized assets like fixed income and funds.
According to a statement from MAS on November 4, the regulator has enlisted over 40 financial institutions, associations, and policymakers to conduct asset tokenization trials in capital markets.
Citi, HSBC, Schroders, Standard Chartered, and UOB have joined forces to form the Guardian Wholesale Network, aiming to commercialise asset tokenization and increase adoption across the financial sector.
"MAS has seen strong interest in asset tokenization in recent years, notably in fixed income, FX, and asset management. We are encouraged by the keen participation from financial institutions and fellow policymakers to co-create industry standards and risk management frameworks to facilitate commercial deployment of tokenized capital markets products, and scale tokenized markets on an industry-wide basis," noted MAS Deputy Managing Director Leong Sing Chiong.
Project Guardian also expands the scope of MAS’s Global Layer One (GL1) platform, which was launched in 2023.
The platform is intended to create a global framework for the seamless cross-border trading of tokenized assets.
To support this, GL1 will focus on aligning governance, risk controls, and settlement conventions, aiming to establish a robust ecosystem for tokenized asset transactions.
Additionally, MAS has introduced two new frameworks as part of Project Guardian: the Guardian Fixed Income Framework (GFIF) and the Guardian Funds Framework (GFF).
The GFIF integrates tokenization standards from the International Capital Market Association, Capital Markets and Technology Association, and the Global Financial Markets Association.
Meanwhile, the GFF offers best practices for the tokenization of funds, helping to define industry standards for tokenized securities.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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