The Monetary Authority of Singapore (MAS) is launching five new pilots to test fundamental capabilities for scaling tokenized markets and prospects for improving the efficiency of financial markets through tokenization.
The MAS, the primary regulator of the cryptocurrency market in Singapore, has announced the expansion of Project Guardian. As part of the initiative, the authority will continue to collaborate with financial industry members by launching five new pilots for asset tokenization.
In particular, the MAS is working with international financial organizations on these initiatives:
- Exploring institutional mechanisms for efficient pricing and execution of bilateral digital asset transactions. The pilot project is being led by Citi analysts in collaboration with T. Rowe Price and Fidelity International. The initiative will develop mechanisms for post-trade reporting and real-time analytics of digital asset transactions.
- Testing a solution for international currency transfers to provide secure, interoperable payment solutions. The pilot project will be led by BNY Mellon and Oversea-Chinese Banking Corporation Limited (OCBC).
- Developing a treasury management solution to improve global finance. Analysts at A.N.T. International will test the mechanisms of an instant multi-currency clearing and settlement system.
- Exploring the possibility of issuing a tokenized money market through a Variable Capital Company (VCC) structure. Franklin Templeton analysts will test the use of digital networks to maintain records of fund shares.
- Examining the use of digital assets to provide smoother investment and management of discretionary portfolios and alternative assets. Financial giants J.P. Morgan and Apollo will test automation of portfolio rebalancing and scaling systems.
The MAS representatives have also launched Global Layer One (GL1), an initiative to explore the design of an open digital infrastructure that will host tokenized financial assets and applications. GL1 is launched in close collaboration between the MAS and international policymakers and financial institutions including BNY Mellon, DBS, J.P. Morgan, and MUFG.
According to Leong Sing Chiong, Deputy Managing Director (Markets and Development) of the MAS, a scalable digital infrastructure needs to be put in place to see how to realize the full potential of tokenized markets. This is the purpose for which the GL1 initiative has been launched. The MAS is also developing Interlinked Network Models (INM), which will serve as a common framework for exchanging digital assets through independent networks, he said.
A special group of policymakers was recently set up under Project Guardian to develop common standards and regulatory frameworks for the digital asset ecosystem.
