The Monetary Authority of Singapore (MAS) has introduced two new frameworks aimed at enhancing the commercialization of asset tokenization in financial markets.
The Monetary Authority of Singapore (MAS) has introduced two new frameworks aimed at enhancing the commercialization of asset tokenization in financial markets.
These frameworks, developed through the MAS-led Project Guardian initiative, focus on tokenization practices for fixed-income instruments and investment funds.
The first framework, known as the "Guardian Fixed Income Framework," outlines guidelines for implementing tokenization in debt capital markets. According to the MAS, the tokenization of fixed-income assets could improve transparency, trading efficiency, and settlement times among market participants, making these assets more appealing to a wider array of investors and issuers.
Alongside this, the "Guardian Funds Framework" offers recommendations for industry best practices related to tokenized funds.
This framework includes the "Guardian Composable Token Taxonomy," designed to simplify the creation of tokenized investment vehicles that incorporate multiple assets, which could lead to greater efficiencies in fund settlement.
Since its inception in 2022, Project Guardian has conducted over 15 trials involving various financial products across six currencies, engaging more than 40 financial institutions, industry associations, and policymakers from seven jurisdictions.
The initiative aims to bolster the efficiency and effectiveness of capital markets through the adoption of tokenization.
In addition to the frameworks, the MAS announced the formation of the "Guardian Wholesale Network," which includes industry players such as Citi, HSBC, Schroders, Standard Chartered and UOB.
This group aims to enhance the commercialization of asset tokenization and broaden participation in primary and secondary markets.
Leong Sing Chiong, deputy managing director of the MAS, noted a rising interest in asset tokenization, particularly in fixed-income, foreign exchange, and asset management sectors.
The MAS is coordinating efforts to support the commercialization of products resulting from successful trials within Project Guardian.
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