Deutsche Bundesbank, Germany’s central bank, has officially joined Singapore’s Project Guardian, a collaborative initiative aimed at advancing financial markets through asset tokenization.
In a press release published on November 8, the central bank announced the move, stating that its intention was to strengthen cross-border collaboration and further explore the “standardization and interoperability of digital assets.”
Deutsche Bundesbank’s participation in the project would see it testing an interoperable blockchain platform for tokenized and digital assets, although specific details of the initiative remain undisclosed.
Leong Sing Chiong, Deputy Managing Director of the Monetary Authority of Singapore (MAS), expressed optimism about the value Deutsche Bundesbank’s expertise would bring, particularly in enhancing liquidity and efficiency in financial markets through tokenization.
Burkhard Balz, a member of Deutsche Bundesbank’s executive board, stated that the Monetary Authority of Singapore (MAS) is actively working on innovative areas that Germany is also exploring, such as pilots involving distributed ledger technology and blockchain networks.
According to Balz, the German central bank aims to use the initiative’s resources to explore how asset tokenization can be effectively utilized within the financial sector.
Deutsche Bundesbank’s involvement follows that of another German financial institution, Deutsche Bank, which joined Project Guardian earlier in 2024 to focus on tokenization for wholesale funding and DeFi applications.
Meanwhile, the MAS has unveiled plans to accelerate its tokenization initiatives in response to growing demand for tokenized assets in markets like fixed income, foreign exchange, and asset management. Singapore’s top financial regulator revealed that it is introducing two key frameworks that are aligned with global standards and designed to enhance market infrastructure, improve liquidity, and support seamless cross-border transactions.
Notably, other central banks, including those in Hong Kong, Thailand, and Brazil, are also exploring tokenization. Hong Kong’s HKMA announced a partnership in late October with the Bank of Thailand and the Central Bank of Brazil to test cross-border applications of tokenized assets, focusing on interoperability and streamlined transactions using distributed ledger technology.
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