In a recent news report, the Monetary Authority of Singapore (MAS), in conjunction with 17 institutions, launched Project Guardian, aimed at improving digital asset tokenization. In addition, about five pilots have been staged under Project Guardian to explore crypto transactions and international payment solutions using tokenized digital assets.
According to the report, the Singapore’s monetary agency, MAS, recently announced the launching of its large-scale digital assets tokenization program, which is called Project Guardian (PG). The new project was reportedly created to facilitate the institutional adoption of crypto assets, which would enhance the financial market’s efficiency while opening doors for more opportunities.
Furthermore, the report showed that the MAS has planned five industry pilots to take place under the project in order to explore different aspects of the use cases of tokenized assets in the capital market value system. The pilots cover a number of activities such as analytics, real-life post-trade records, practical strategies for pricing, and settling bilateral crypto transactions.
Many Top Financial Firms Takes Part In The Initiative
In addition, some top financial firms, such as Fidelity International, Citi and T. Rowe Price Associates, Inc., are reportedly going to lead the evaluation procedures for crypto trades on the institutional level. Meanwhile, OCBC Bank and BNY Mellon would examine an international FX payment initiative to create secured and versatile payment solutions that can work across multiple networks.
Also, the treasury management solution of the project would be controlled by the Ant Group’s pilot, enhancing global liquidity maintenance by leveraging their Singapore-based global treasury hub. Franklin Templeton would investigate the issuance procedure of the tokenized money market fund using a Variable Capital Company strategy and various crypto networks.
Apollo and J.P. Morgan would jointly invest and maintain discretionary asset portfolios and other assets leveraging use cases of digital assets while targeting automated customization and rebalancing.
MAS To Improve Cross-Border Payment Settlements
Furthermore, the Monetary Authority of Singapore started that under Project Guardian, it would create a new workstream for funds to facilitate the issuance of Variable Capital Company funds on crypto networks. According to the report, MAS aims to solve various issues in legal domains, policy, and tax, as well as increase the distribution medium for portfolio managers.
As claimed in the news report, MAS is progressing in its plans by allying with International lawmakers and financial organizations, such as JP Morgan, DBS, MUFG, and BNY, to build Global Layer One, which is an open digital facility designed to accommodate financial assets tokenization and use cases. This initiative would facilitate seamless international trade in order to improve compliance with financial regulations.
In addition, MAS is also building an Interlinked Network Model, which is a structure for trading crypto assets across multiple networks that operate independently. According to the report, this model would enable trades between financial institutions that do not sure the same network, thereby improving operational flexibility and the reach of a digital set market.
MAS To Forge Global Market For Tokenized Assets
According to the report, the International Monetary Fund is also a member of the lawmakers group for the Project Guardian, having their delegates from the United Kingdom, Switzerland, and Japan. Furthermore, the presence of these delegates showed that procuring a solution to the legal issue that plagued the cross-border payment platforms is paramount to international bodies as well as maintaining the equilibrium of the global monetary system.
In addition, MAS’ Deputy Managing Director, Leong Chiong, announced the organization’s success in demonstrating the industrial pilot of the Project Guardian. Chiong stated that the pilots probed that tokenized financial assets such as asset management products, foreign exchange, and fixed income could be internationally exchanged, dispersed, and settled effectively.
The creation of Global Layer One would offer essential digit support to merge markets with openness and accessibility protocols. More so, the MAS reportedly sought the participation of other lawmakers and financial organizations in the design stage of the Global Layer One initiative.
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