The Monetary Authority of Singapore (MAS), in collaboration with 11 financial institutions, explored infrastructure models to facilitate tokenized asset trading as part of Project Guardian.
The Monetary Authority of Singapore published a report on the possibilities of trading tokenized assets through open networks. According to analysts, this approach can help create the basic principles of a global market infrastructure for digital assets.
The project identified options for platform types, assets, and network access levels. Tokenized asset trading was tested in three contexts:
- Interbank foreign exchange market transactions. The research was conducted with DBS Bank and SBI Digital Asset Holdings. Analysts concluded that using a liquidity pool in tokenized asset trading increases efficiency and minimizes risk.
- Trade Finance. The study involved Standard Chartered Bank, which issued tokenized assets backed by securities. Analysts concluded that these types of assets have low risk and can broaden the range of investors.
- Over-the-counter (OTC) transactions in foreign currencies. The study was conducted with the participation of HSBC, Marketnode, and United Overseas Bank, which created a public platform that permits to include participants in the white list. According to analysts, this approach contributes to the efficiency of the creation and distribution of tokenized assets.
It’s worth noting that MAS representatives cited observation as the study’s goal. The regulator does not support any of the options studied. The report only emphasizes that the key to fully realizing the benefits of tokenization technology is the use of open and interoperable networks of digital assets.
As a reminder, Project Guardian was launched in 2022. The project has successfully executed foreign currency and tokenized government securities transactions using DeFi-platforms.
