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Singapore regulators plan to advance tokenization efforts as the sector has witnessed an uptick in demand for tokenized assets across fixed-income, foreign exchange, and asset management markets. In a Nov. 4 announcement, the Monetary Authority of Singapore disclosed its intentions to promote the commercialization of tokenized assets by developing market infrastructures, deepening liquidity, and establishing industry frameworks to support seamless cross-border transactions. According to Leong Sing Chiong, deputy managing director of MAS, the country has “seen strong interest in asset tokenization in recent years, notably in fixed income, FX, and asset management.”  To support this interest and enable wider adoption, the MAS has introduced two frameworks, namely the Guardian Fixed Income Framework which will offer guidelines for tokenizing fixed-income assets by aligning with global standards, while the Guardian Funds Framework outlines best practices for creating tokenized investment funds. Developed by the Project Guardian industry group, these frameworks are the latest step in Singapore’s tokenization efforts under Project Guardian. Launched in 2022, the initiative brings together over 40 financial institutions, associations, and policymakers across seven jurisdictions to enhance liquidity and efficiency in financial markets through tokenization. To date, Project Guardian has conducted over 15 industry trials across six currencies and multiple financial products, focusing on applications of asset tokenization in capital markets, the announcement added.  The MAS has since moved to commercialize these efforts through the formation of the Guardian Wholesale Network, an industry group comprising Citi, HSBC, Standard Chartered, Schroders, and UOB. “We are encouraged by the keen participation from financial institutions and fellow policymakers to co-create industry standards and risk management frameworks to facilitate commercial deployment of tokenized capital markets products, and scale tokenized markets on an industry wide basis,” Chiong added. As a part of its strategy, the MAS is also creating a “common settlement facility” to make…

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Filed under: News - @ November 4, 2024 9:24 am