The Monetary Authority of Singapore (MAS) announced a new initiative on Monday to promote tokenization in the financial services sector, including the establishment of a commercial network to deepen tokenized asset liquidity, the development of ecosystem infrastructure, the facilitation of industry frameworks for tokenized asset implementation, and the utilization of common settlement facilities for tokenized assets.
Over the past two years, MAS has convened more than 40 financial institutions, industry associations, and international policymakers from seven jurisdictions under a collaborative industry initiative called “Project Guardian” to conduct industry experiments on the use of asset tokenization in capital markets. To date, the project has conducted over 15 industry experiments on a variety of financial products denominated in six currencies.
Industry Framework for Tokenization Implementation
To facilitate widespread adoption and implementation of tokenized assets by financial institutions, MAS has also released industry frameworks developed by members of the Project Guardian industry working group.
The Guardian Fixed Income Framework (GFIF) will provide guidance, enhance capabilities, and promote the adoption of tokenized fixed income solutions in the debt capital markets. The Guardian Funds Framework (GFF) will offer best practices for tokenized funds, including provisions for developing tokenized investment instruments composed of multiple assets.
