MAS forms Project Guardian Industry Group with 11 FIs
The report explores the application of CPMI-IOSCO principles for financial sector infrastructures to emerging models of digital asset networks.
The Monetary Authority of Singapore (MAS) has formed the Project Guardian Industry Group, consisting of 11 financial institutions (FIs) who will explore the possibilities of asset tokenisation across various financial asset classes.
The central bank also released a report outlining a framework for creating open and interoperable networks for digital assets with the contribution of the 11 financial institutions.
The report, titled Enabling Open & Interoperable Networks, was developed in collaboration with experts from the Bank for International Settlements' Committee on Payments and Market Infrastructure (CPMI) and financial institutions.
In addition, the report explores the application of CPMI-IOSCO principles for financial sector infrastructures to emerging models of digital asset networks.
It draws insights from industry pilots conducted as part of MAS' Project Guardian, a collaborative initiative with the financial industry aimed at testing the viability of asset tokenisation and Decentralised Finance applications.
By aligning with international standards, MAS aims to establish a secure and efficient financial market infrastructure for emerging digital asset networks.
Project Guardian Industry Group
These institutions will take the lead in conducting industry pilots focused on asset and wealth management, fixed income, and foreign exchange.
In the field of asset and wealth management, the pilots encompass a variety of initiatives, including digitally structured products and tokenised investment vehicles.
HSBC, Marketnode and UOB accomplished a technical pilot regarding the issuance and distribution of a digitally native structured product.
Meanwhile, UBS Asset MAangement said it is launching a pilot to research the “native issuance of Variable Capital Company (VCC) fund on digital asset networks”.
Likewise, Schroders and Calastone have formed a partnership to explore the potential of a tokenised investment vehicle that can package and issue traditional investment securities using VCCs.
For fixed income and foreign exchange, pilots in tokenised asset-backed securities, tokenised bonds, and tokenised bank liabilities include: Standard Chartered partnered with Linklogis, which has jointly developed an initial token offering platform.
DBS Bank, SBI Digital Asset Holdings, and UBS AG are currently conducting a pilot program involving repurchasing agreements (repo) with digitally issued bonds. Whilst Citi is currently conducting tests on a distributed ledger to assess the pricing and execution of digital asset trades.
Additionally, MAS announced Japan Financial Services Agency (JFSA) as the first overseas financial regulator to enter Project Guardian.