Singapore’s MAS has reportedly teamed up with 11 banking giants to run several pilot programs to improve market issuance by tokenizing assets.
The Monetary Authority of Singapore (MAS) is proposing a framework to develop an open and interoperable network for tokenizing assets. central bank on monday published A report containing the details of its proposal is called Project Guardian.
The publication states that MAS is already collaborating with 11 organizations working to develop and test the token across multiple asset classes. The test will feature foreign exchange, fixed income and wealth management asset classes operated by some financial services companies.
Interestingly, MAS is not very supportive of most cryptocurrencies due to their highly speculative nature. However, the central bank said that it is interested in the benefits that can be derived from the world of digital assets. According to Leong Sing Cheong, Deputy Managing Director of Markets and Development at MAS, “While MAS strongly discourages and seeks to prohibit betting in cryptocurrencies, we see great potential for value creation and efficiency gains in the digital asset ecosystem “
Some of the banks that are part of the initial trial and offer are DBS, Standard Chartered, Citi and HSBC. Standard Chartered is already working on a platform that develops asset-backed tokens for trading on the Singapore Exchange. Speaking on the pilot, Kai Fehr, Standard Chartered’s global head of trading and working capital, said the trial has already confirmed the benefits available to investors. According to Fehr, “The initial pilot trading, conducted in collaboration with the Singapore Exchange and LinkLogis, proves the viability of asset-backed tokens as an innovative origination-to-distribution structure, and allows investors to participate in real-world financing.” Provides potential opportunities for economic activity.”
More Details of Singapore’s Project Guardian Framework for Tokenizing Assets
In addition to the participating banking giants, MAS developed the report with the Bank for International Settlements (BIS) Committee on Payments and Market Infrastructure (CPMI).
As part of the project, HSBC, Marketnode and UOB have concluded a technology pilot for digitally native structured product issuance. MAS says this pilot proves that the structured product line can offer faster issuance and settlement at a lower cost.
Another pilot by UBS Asset Management explores the issuance of Variable Capital Company (VCC) funds on the Digital Asset Network. The objective of this pilot is to improve trading of VCC Fund shares on the secondary market.
In addition, DBS Bank, UBS AG and SBI Digital Asset Holdings are working on repurchase agreements with Digital Bonds. It aims to bring greater flexibility, efficiency and speed to cross-border delivery and settlement.
Singapore’s CBDC Project
MAS’s general reluctance towards CBDCs has not stopped it from exploring non-speculative digital currencies. Singapore’s central bank joins a number of countries working on digital currencies (cbdc) and completed the first phase of its CBDC project. called Project OrchidMAS initially started working on it in November 2021.
Project Orchid launched in Singapore to test the design and technicalities of a CBDC system. The central bank also examined how well the CBDC would work with the existing payment infrastructure. Bank disclosed:
“While MAS assesses that there is no immediate need for a retail CBDC in Singapore at this time, MAS seeks to facilitate ongoing education and advance financial infrastructure in Singapore.”
At launch, MAS called Project Orchid a “multi-year, multi-phase exploratory project” without providing a time frame.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip the mysteries of crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When Tolu is not deeply immersed in crypto stories, he enjoys music, loves to sing and is an avid movie lover.
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