The Monetary Authority of Singapore (MAS), is doing its best to enhance the process of tokenization in the region. In a Monday blog post, the regulator announced some key measures that it has put in place to ensure that the concept becomes even more pronounced in the financial sector.
According to the Monetary Authority of Singapore (MAS), the initiatives are designed to strengthen tokenized assets’ liquidity and support market infrastructure growth. The regulator also plans to establish a commercial network and develop various industry frameworks. This, according to the press release, will broaden the adoption of tokenized assets within the region. Similarly, MAS will facilitate access to shared settlement facilities.
The Deputy Managing Director( Market and Development) of MAS, Leong Sing Chiong in the release pointed out the growing demands for asset tokenization, especially in fixed income, foreign exchange, and asset management. According to Chiong, this initiative mirrors strong support from financial institutions and policymakers seeking to work with MAS. He added that these institutions and policymakers are already collaborating with the regulator to address industry standards and risk management while helping to launch tokenized financial products at scale.
MAS to bring over 40 financial firms together through “Project Guardian”
Meanwhile, it is important to note that the core component of the Monetary Authority of Singapore (MAS) initiative is the “Project Guardian”. As revealed, Project Guardian brings over 40 financial institutions, industry associations, and global policy markers from seven jurisdictions together.
Notably, Project Guardian’s central objective is to carry out comprehensive trials examining the application of asset tokenization in capital markets. Similarly, key players in the industry such as Citi Standard Chartered, HSBC, Schroders, and UOB have also joined the Guardian Wholesale Network to enable a corporative environment for expanding tokenization efforts.
Furthermore, Project Guardian also introduced a new framework known as “Guardian Fixed Income” to facilitate the adoption of tokenized assets. As revealed, the framework strives to provide clear policies for implementing tokenization in debt capital markets, encouraging greater use of tokenized fixed-income solutions. The framework also offers the best practice recommendations for developing tokenized investment across various assets.
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