Global: MAS Initiates New Asset Tokenization Pilots in Collaboration with International Banks

Singapore plans joint crypto pilots with Japan, Switzerland and UK
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The Monetary Authority of Singapore (MAS) is set to launch a new series of asset tokenization pilots in partnership with 17 global banks. Building on MAS’ Project Guardian, which involved 15 financial institutions in asset tokenization pilots for fixed income, foreign exchange, and asset management products, the new initiative explores additional use cases in listing, distribution, trading, settlement, and asset servicing.

The five new pilot projects involve collaboration with renowned institutions:
1. Citi, T. Rowe Price, and Fidelity International are testing mechanisms for institutional-grade pricing and execution of bilateral digital asset trades, along with exploring real-time post-trade reporting and analytics.
2. BNY Mellon and OCBC are trialing a cross-border FX payment product.
3. Ant Group is testing a real-time multi-currency clearing and settlement treasury management service through its global treasury center in Singapore.
4. Franklin Templeton is exploring the issuance of a tokenized money market fund through a Variable Capital Company (VCC) structure.
5. JPMorgan and Apollo are collaborating on using digital assets for investment and management of portfolios, automated portfolio rebalancing, and customization at scale.

MAS is launching a new Project Guardian funds workstream, focusing on the native issuance of Variable Capital Company (VCC) funds on digital asset networks. Additionally, MAS is working on the Global Layer One (GL1) initiative, collaborating with international policymakers and financial institutions. GL1 aims to provide a digital infrastructure for trading tokenized assets across global liquidity pools while meeting regulatory requirements.

Another project involves the development of an Interlinked Network Model (INM), serving as a common framework for exchanging digital assets across independent networks. This enables financial institutions to transact with each other without requiring all of them to be on the same network.

In a recent development, MAS has welcomed the International Monetary Fund to its collaboration with regulators from the UK, Switzerland, and Japan to address regulatory challenges and explore commercial use cases of asset and fund tokenization.

Leong Sing Chiong, Deputy MD at MAS, highlighted the success of Project Guardian’s industry pilots and emphasized the need for a scalable digital infrastructure. GL1 is envisioned as a foundational digital backbone that brings markets together with principles of openness and accessibility similar to the public internet. MAS invites additional policymakers and financial institutions to participate in the design phase of the GL1 initiative.

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