The Monetary Authority of Singapore (MAS) has expanded its Project Guardian initiative by introducing five industry pilots to explore various use cases related to asset tokenization.
Project Guardian, led by Singapore’s central bank, aims to leverage decentralized finance (DeFi) elements to develop new financial infrastructure. The latest initiatives focus on building foundational capabilities to scale tokenized markets.
Among the 17 financial institutions participating in Project Guardian, Citi, T. Rowe Price, and Fidelity International are testing bilateral digital asset trade mechanisms, investigating real-time post-trade reporting, and analyzing digital asset trades. Ant Group is exploring the capability of a treasury management solution to enhance global liquidity management funding.
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BNY Mellon and OCBC are collaborating to test a cross-border foreign exchange payment solution designed for payments across diverse networks. Franklin Templeton is involved in testing the issuance of a tokenized money market fund through a variable capital company (VCC) structure. Additionally, JPMorgan and Apollo have joined forces to streamline time-consuming manual processes for asset servicing using digital assets.
In addition to the five pilots, MAS has launched Global Layer One, an exploration into the design of an open digital infrastructure to host tokenized financial assets and applications. The central bank has partnered with the financial industry to develop an Interlinked Network Model, serving as a common framework for the exchange of digital assets across independent networks among financial institutions.
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As part of Project Guardian’s policymaking team, the International Monetary Fund has been included, highlighting the initiative’s global significance. MAS envisions that these developments under Project Guardian will foster institutional adoption of digital assets, promoting liquidity, unlocking investment opportunities, and enhancing the efficiency of financial markets.
This expansion of Project Guardian underscores Singapore’s commitment to exploring and implementing innovative solutions in the realm of decentralized finance and digital assets. By fostering collaboration between financial institutions and leveraging emerging technologies, MAS aims to shape the future of financial infrastructure and contribute to the evolution of tokenized markets on a global scale.
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