Singapore Plans to Advance Tokenization in Financial Services

• The MAS plans to introduce new measures to advance tokenization in financial services.
• The move is part of Singapore’s vision of positioning itself as a leading fintech hub.
• Project Guardian has convened a large-scale collaboration to check the potential of asset tokenization in capital markets.

The Monetary Authority of Singapore (MAS) announced plans to introduce new measures to advance tokenization in financial services.

To boost the tokenized assets market, the regulator will implement a four-part strategy. This includes establishing commercial networks, developing market infrastructures, supporting industry-wide frameworks, and providing access to shared settlement facilities.

Leong Sing Chiong, Deputy Managing Director of Markets and Development at MAS, commented on the growing interest in asset tokenization in recent years. He said:

“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.”

Project Guardian’s Role in Tokenization

Working with MAS’ crypto industry group, Project Guardian, the regulator brought together more than 40 financial institutions, industry groups, and global lawmakers to explore the potential of asset tokenization in capital markets. Project Guardian has also made significant progress in advancing tokenized assets. For example, the platform published two frameworks for financial institutions to use and implement tokenized assets.

Project Guardian’s frameworks are the Guardian Fixed Income Framework and the Guardian Funds Framework. Both aim to promote industry standards, increase efficiency, and encourage innovation in tokenized asset markets.

Read also: WazirX Gets Reprieve From Singapore Court After $234 Million Crypto Hack

The Guardian Fixed Income Framework provides guidelines for tokenizing debt securities to improve market capabilities and speed up the adoption of tokenized fixed-income products. The Guardian Funds Framework offers guidelines for tokenized funds, including creating multi-asset investment vehicles that use tokenization technology.