The Monetary Authority of Singapore (MAS) released a report on asset tokenization and decentralized finance (DeFi) on June 26. The report proposes a framework for designing open, interoperable networks for digital assets.
“The Monetary Authority of Singapore (MAS) today published a report proposing a framework for designing open and interoperable networks for digital assets (i.e. tokenized real economy and financial assets). The Enabling Open and Interoperable Networks report was jointly developed with subject matter experts from the Payments and Market Infrastructure Committee (CPMI) of the Bank for International Settlements (BIS), with input from participating financial institutions. note.
The agency added that the report also “considers how the CPMI-IOSCO principles for financial market infrastructures can be applied to evolving models of digital asset networks, taking as a reference the sector pilots launched in the Guardian Project, which is a collaborative initiative by MAS with the financial sector to test the feasibility of applications in tokenization of assets and decentralized finance”.
"The report forms part of MAS' effort to ensure that emerging networks of digital assets are underpinned by international standards that promote a secure and efficient financial market infrastructure."
In the document, the Monetary Authority of Singapore also announced an expansion of Project Guardian to test the potential of asset tokenization across more financial asset classes. According to the entity, to support this, the MAS created the Project Guardian Industry Group, composed of 11 financial institutions (FIs) that will lead industry pilots in asset and wealth management; fixed income; and foreign exchange.
In the area of asset and wealth management, pilots range from digital structured products to tokenized investment vehicles, MAS reported.
