Singapore regulators are set to enhance their tokenization initiatives in response to growing demand for tokenized assets in fixed-income, foreign exchange, and asset management markets.
In a November 4 announcement, the Monetary Authority of Singapore (MAS) outlined its plans to foster the commercialization of these assets by developing market infrastructure, increasing liquidity, and creating industry frameworks to facilitate seamless cross-border transactions.
Leong Sing Chiong, the deputy managing director of MAS, noted that the country has experienced significant interest in asset tokenization in recent years, particularly in the areas of fixed income, foreign exchange, and asset management.
To foster this interest and promote broader adoption, the MAS launched two frameworks: the Guardian Fixed Income Framework, which provides guidelines for tokenizing fixed-income assets in line with global standards, and the Guardian Funds Framework, which outlines best practices for developing tokenized investment funds.
These frameworks are part of MAS’s Project Guardian, an initiative launched in 2022 that unites over 40 financial institutions, associations, and policymakers across seven jurisdictions. Project Guardian has already conducted over 15 industry trials, testing tokenized products in six currencies and multiple financial markets to explore the practical benefits of asset tokenization.
The regulator has further strengthened Project Guardian by establishing the Guardian Wholesale Network, which includes industry leaders like Citi, HSBC, Standard Chartered, Schroders, and UOB. Chiong highlighted strong collaboration within the network as institutions work together to develop standards and risk management frameworks.
Chiong expressed optimism about the strong engagement from financial institutions and policymakers in collaboratively developing industry standards and risk management frameworks.
Meanwhile, MAS launched the Global Finance and Technology Network (GFTN) on October 30 to further develop Singapore’s fintech landscape. Replacing the previous Elevandi initiative, GFTN will focus on advancements in payments, asset tokenization, AI, and quantum computing, building on prior initiatives such as regulatory sandboxes and digital asset trials.
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