The Monetary Authority of Singapore (MAS) Expands Project Guardian with Five New Industry Pilots
The Monetary Authority of Singapore (MAS) has announced the addition of five new industry pilots to Project Guardian, a collaborative initiative aimed at testing various use cases around asset tokenization. This project, led by Singapore’s central bank, is focused on developing new financial infrastructure using decentralized finance (DeFi) elements.
According to MAS, the latest initiatives are intended to develop foundational capabilities to scale tokenized markets. MAS explained, “These developments under Project Guardian will catalyze the institutional adoption of digital assets, with the aim of freeing up liquidity, unlocking investment opportunities, and increasing the efficiency of financial markets.”
Out of the 17 financial institutions involved in Project Guardian, Citi, T. Rowe Price Associates, Inc., and Fidelity International are testing bilateral digital asset trade mechanisms, exploring real-time post-trade reporting and analytics of digital asset trades. Ant Group is testing a treasury management solution’s capability to enhance liquidity management funding globally.
BNY Mellon and OCBC are responsible for testing a cross-border FX payment solution for payments across heterogeneous networks. Franklin Templeton is testing the issuance of a tokenized money market fund through a Variable Capital Company (VCC) structure, while J.P. Morgan and Apollo have collaborated to tackle time-consuming manual processes for asset servicing using digital assets.
In addition to the five pilots, MAS has launched Global Layer One (GL1) to explore the design of an open digital infrastructure that will host tokenized financial assets and applications. The central bank has also collaborated with the financial industry to develop an Interlinked Network Model (INM), which will serve as a common framework for exchanging digital assets across independent networks among financial institutions.
Furthermore, MAS revealed the inclusion of the International Monetary Fund (IMF) as one of Project Guardian’s policymakers.
These developments mark a significant step forward in the adoption and integration of digital assets within the traditional financial industry. The inclusion of the IMF as a policymaker in Project Guardian further emphasizes the global significance of these initiatives.
Related: Singapore plans joint crypto pilots with Japan, Switzerland and UK
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