S&P Global Ratings joined the study of financial asset tokenization as part of Project Guardian. The agency will examine and assess the risks of using tokenized assets in fixed income transactions.
As one of the largest independent credit rating providers, S&P Global Ratings announced its participation in Project Guardian, an initiative by the Monetary Authority of Singapore (MAS), that explores the role of tokenized assets in improving the liquidity and efficiency of financial markets.
Within the project, S&P Global will engage in several initiatives focused on examining the potential of tokenized assets in fixed income operations. Andrew O’Neil, Digital Assets Analytical Lead at S&P Global Ratings, highlighted the agency’s commitment to addressing risk reduction associated with tokenized asset transactions. The agency aims to leverage all available tools to mitigate the impact of tokenization on financial markets.
S&P Global joins other companies involved in Project Guardian, focusing initially on pilot projects involving currency and bond exchanges using liquidity pools based on tokenized equivalents. The initiative will also explore repo operations with digital bonds, develop listing procedures for debt securities, and facilitate ICOs on the Singapore Exchange.
S&P Global becomes the 24th member of Project Guardian’s industrial group, which primarily comprises major banks and asset managers. These TradFi companies within Project Guardian manage assets and conduct currency exchanges on public blockchain networks, while studying the interoperability of various decentralized infrastructure segments.
Project Guardian, initiated by the MAS in May 2022 with participation from JP Morgan, Deutsche Bank, and UBS, expanded in 2023 to establish a regulatory group focusing on digital asset regulatory frameworks.
