Singapore is rapidly cementing its position as one of the world’s leading centers for digital finance, driven by a surge in tokenized asset adoption and real-world blockchain applications.
What began as controlled pilot programs is now shifting toward large-scale, regulated implementation, with major global institutions taking part.
Launched in 2022, Project Guardian laid the groundwork for exploring decentralized finance and tokenized assets under a regulated framework. Today, the focus is moving beyond experimentation, with public blockchains enabling institutions to integrate tokenized finance directly into their operations.
Infrastructure programs like Global Layer One (GL1) are accelerating this shift. By 2024, heavyweights such as HSBC and Euroclear joined early participants like JPMorgan and Citi, signaling a serious commitment to scaling tokenized finance in Singapore.
Project Guardian’s 2025 Expansion
This year, Project Guardian entered a new phase under the leadership of the International Capital Market Association (ICMA), targeting tokenization of debt markets. On August 5, the Investment Management Association of Singapore (IMAS) and the UK’s Investment Association (IA) joined the initiative, further expanding its scope.
Why Tokenization Matters for Investors
Tokenized real-world assets, including Treasury bills, are making Singapore more attractive to global capital by boosting liquidity, accessibility, and returns. Franklin Templeton recently launched the first MAS-approved tokenized fund for all Singapore investors, allowing participation with as little as $20. The product offers faster trade execution and easier fund management, marking a milestone in mainstream tokenized investing.
Regulatory hurdles remain, but “permissioned DeFi” — blockchain-powered finance with built-in compliance features like on-chain identity — is emerging as a viable solution. Analysts project that tokenized assets could grow into a $19 trillion market by 2033.
Payments and Blockchain Interoperability
Singapore is also advancing tokenization in payments. As one of Asia’s largest FX markets, the country is streamlining cross-border transactions with regulated stablecoins. The Monetary Authority of Singapore (MAS) approved offerings from Paxos and StraitsX in 2023, enabling faster, cheaper, and more transparent payments.
Tokenized bank liabilities on public blockchains like the XRP Ledger (XRPL) help institutions maintain compliance while protecting user identities. Ripple CTO David Schwartz highlighted XRPL’s 13-year track record, crediting its proven design and growing programmability as a blueprint for the next wave of interoperable, compliant financial systems.
With robust infrastructure, regulatory clarity, and institutional adoption, Singapore appears well on track to lead the next era of tokenized global finance.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/singapore-races-ahead-as-global-hub-for-tokenized-finance/