MAS Expands Project Guardian with Five New Trials to Boost Digital Asset Adoption
Summary:
Singapore's Monetary Authority (MAS) has integrated five new industry trials into Project Guardian, a scheme focused on exploring asset tokenization applications. The project, described as a collaborative effort, involves 17 financial institutions such as Citi, T. Rowe Price Associates, Fidelity International, Ant Group, BNY Mellon, OCBC, Franklin Templeton, J.P. Morgan, and Apollo. These firms will test concepts related to digital asset trade, liquidity management, cross-border FX payment solutions and asset servicing. Alongside this, MAS has launched the Global Layer One program to explore a potential open digital framework for tokenized financial assets and revealed the IMF's inclusion as a Project Guardian policymaker.
Singapore's chief financial regulator, the Monetary Authority of Singapore (MAS), has introduced five new industry trials into the Project Guardian initiative. This project is designed to explore different applications of asset tokenization. Led by Singapore's central banking institution, Project Guardian aims to create innovative financial structures utilizing elements of decentralized finance (DeFi). The most recent efforts are focusing on establishing foundational capabilities to expand tokenized markets. According to MAS, these advancements via Project Guardian will stimulate institutional acceptance of digital assets, the objective of which is to bolster liquidity and uncover investment opportunities, along with optimizing the effectiveness of financial markets. Of the 17 financial organization members of Project Guardian, Citi, T. Rowe Price Associates, Inc. and Fidelity International are probing bilateral digital asset trade practices, and examining immediate post-trade reporting and digital asset trade analytics. Ant Group is assessing a treasury management system's ability to improve global liquidity management funding. As featured on mas.gov.sg, Project Guardian members BNY Mellon and OCBC have taken on the examination of a cross-border FX payment solution, intending to facilitate payments across varied networks. Franklin Templeton is experimenting with the issuance of a tokenized money-market fund through a Variable Capital Company (VCC) structure. Furthermore, J.P. Morgan and Apollo are joining forces to address lengthy manual procedures for asset servicing by utilizing digital assets. Aside from these five newly initiated trials, MAS has launched the Global Layer One (GL1) program to investigate the potential for an open digital framework capable of hosting tokenized financial entities and applications. The central bank is also working alongside the financial sector to establish an Interlinked Network Model (INM), designed to facilitate the exchange of digital assets across independent networks used by financial institutions. In addition to this, MAS has announced the International Monetary Fund (IMF) will join Project Guardian as a policymaker.
Published At
11/15/2023 10:14:45 AM
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