The countries created a policymaking group to help advance asset token trials and address legal and compliance concerns.
Government agencies in several countries are collaborating on asset token testing with real-world assets. Regulators in Japan, Switzerland, Singapore and the UK are working on token pilots in forex, fixed income and asset management products, the Monetary Authority of Singapore (MAS) announced on Monday.
As those’ Announcement Japan’s Financial Services Agency (FSA), the United Kingdom’s Financial Conduct Authority (FCA), and the Swiss Financial Market Supervisory Authority (FINMA) are mentioned. The collaboration, called Project Guardian, involves 15 financial institutions working together on industry pilots.
MAS notes that the pilots have the potential to deliver significant benefits to the market and improve transaction efficiency through tokenization. The announcement said that as pilots scale up and increase in sophistication, the project requires “close cross-border cooperation between policy makers and regulators” – the policy makers constituting the FCA, FINMA and FSA. Inspiration to form a group.
Speaking on the partnership, Mr Leong Sing Cheong, Deputy Managing Director of Markets and Development of MAS, said:
“MAS’s partnership with the FSA, FCA and FINMA shows a strong desire among policymakers to deepen our understanding of the opportunities and risks arising from digital asset innovation. Through this partnership, we hope to promote the development of common standards and regulatory frameworks that can better support cross-border interoperability as well as the sustainable development of the digital asset ecosystem.
MAS provided more information about the Asset Tokenization Policy Maker Group. Some of its tasks include further discussion on legal and policy implications on digital assets, identifying potential risks, and exploring the development of common standards for digital asset networks. The group is also tasked with promoting interoperability for cross-border asset development, facilitating pilots to navigate regulatory sandboxes, and facilitating knowledge sharing between regulators and industry.
Asset Tokenization of Real World Assets
Asset tokenization adds flexibility to real-world assets that are otherwise rigid and inflexible. For example, stable coins qualify as tokens representing real-world assets because their values are tied to the underlying assets. Although some stablecoins are pegged to precious metals like gold, some are powered by algorithms. However, the most popular stablecoins are those pegged to fiat currencies, such as USDT. In some cases, major stablecoins attract higher daily transaction volumes than cryptocurrencies like Bitcoin (B T c,
According to the World Economic Forum (WEF), blockchain technology will contribute 10% to global GDP by 2027. The WEF also estimates that financial assets in the token market alone will be around $24 trillion at that time. However, there are many concerns regarding the increasing tokenization of real-world assets. For example, registration and uncontrolled transfer of these assets may pose some risks. If these items exist mostly or entirely on the blockchain, especially if the network is not decentralized, access to verification may be limited or at least controlled by a central authority. This exposes the property or property records to undue risk of being tampered with. Technical challenges may arise as well, including ensuring consistency between the real-world asset and the on-chain representation. Finally, regulatory uncertainty, particularly with how these assets are classified, makes the future of asset tokenization somewhat bleak.

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip down the secrets of crypto stories to the basics so that anyone anywhere can understand without too much background knowledge. When Tolu is not deeply immersed in crypto stories, he enjoys music, loves to sing and is an avid film buff.
Bitcoin Crypto Related Post