On Monday, the Singapore Monetary Authority (MAS) published a report to advocate for a clearer and more efficient framework for building an open, interoperable network for digital assets. In its media statement, the regulator emphasized the growing need for the framework. MAS said it consulted experts at the Bank for International Settlements (BIS) and Committee on Payments and Market Infrastructure(CPMI) to arrive at the submissions contained in the report. More so, it also considered contributions from other notable financial institutions.
One of the issues assessed in the report revolves around how CPMI-IOSCO principles for the financial market infrastructures can be applied to developing models of digital asset network. MAS took samples from industry pilots launched under Protect Guardian, one of the authority’s collaborative initiative with the financial industry. These samples were used to experiment the feasibility of applications in asset tokenization and decentralized finance.
This report, as revealed by MAS, comes as part of its efforts to ensure that upcoming digital asset networks comply with international standards to facilitate safe and efficient financial market infrastructure. Similarly, the regulator also announced the ongoing expansion of Project Guardian. According to the report, the pilot helped to test the prospects of asset tokenization across more financial asset classes. To achieve this, it brought together eleven financial institutions that made up the Project Guardian Industry Group. Meanwhile, the project helps to navigate a pathway for industry pilots in asset management, fixed incomes, and more.
MAS announces completion of digital product issuance pilot by HSBC
Also, MAS confirmed the completion of a pilot on the issuance of a digital product by HSBC, Marketnode, and UOB. The regulator added that technical pilot uncovered the possibility of lower issuance and servicing costs. It also revealed the chances of reduced issuance, deeper customization, and wider distribution for participants within the structured product chain.
Meanwhile, the Singapore regulator confirmed its partnership of Standard Charted with Linklogis. As revealed, the partnership led to the development of a token offering platform that facilitates the distribution of asset-backed security tokens listed on the Singapore Exchange. In addition, DBS Bank, SBI Digital Asset Holdings and UBS AG, as revealed by MAS, are also executing a pilot repurchasing agreement with digital bonds issued natively.
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