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Singapore, UK deepen joint efforts on asset tokenisation

It aims to drive greater adoption of tokenised assets in both markets.

The Monetary Authority of Singapore (MAS) and the UK’s Financial Conduct Authority (FCA) have agreed to deepen collaboration through joint work on asset tokenisation by partnering with their respective investment industry bodies to better understand its impact on investors.

These investment industry bodies are the UK’s Investment Association and the Investment Management Association of Singapore.

Additionally, it aims to drive greater adoption of tokenised assets in both markets.

The announcement followed the 10th UK-Singapore Financial Dialogue held in London, where regulators from both countries reviewed ongoing initiatives and outlined new areas of cooperation.

That includes Project Guardian, a joint effort between policymakers and the financial industry to test how tokenisation could improve market efficiency and liquidity.

The UK also shared its experience to date in joining the Global Layer One initiative, whilst Singapore provided an update on the initiative’s progress and focus areas.

Both sides also discussed the adoption of artificial intelligence (AI) in the financial services sector, including current trends, emerging use cases, barriers to adoption, and their respective approaches to AI regulation.

Moreover, the FCA and MAS agreed to develop a joint collaboration on AI, focusing on sharing innovative AI solutions and holding discussions on cross-border AI developments.

On capital markets, the UK shared updates on recent pension reforms aimed at driving investment and innovation, as well as its commitment to adopt a T+1 settlement cycle by October 2027.

MAS provided an update on the first set of measures announced by the Equities Market Review Group to deepen liquidity, strengthen the equity research and fund management ecosystem, attract quality listings, and associated upcoming work.

The two countries renewed their commitment to engagement beyond the Dialogue through a series of roadmap engagements to explore further cooperation in sustainable finance and innovation, ahead of the next Financial Dialogue due to be held in Singapore in 2026.

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