The Monetary Authority of Singapore (MAS) has unveiled a plan to promote asset tokenization, aiming to make traditional financial markets more transparent, efficient, and accessible. Asset tokenization involves converting real-world assets into digital tokens on a blockchain, improving liquidity and transaction speed. MAS has outlined goals to advance asset tokenization, including deepening liquidity and establishing commercial networks. The Project Guardian initiative involves prominent financial institutions like Citi and HSBC to create a scalable and interconnected market for tokenized assets. MAS has engaged over 40 institutions through this project. MAS also launched the Global Layer One initiative to establish global guidelines and technical standards for cross-border digital asset transactions. To encourage wider acceptance, MAS introduced the Guardian Fixed Income Framework and the Guardian Funds Framework, which provide standardized guidelines for tokenizing assets. MAS plans to establish a common settlement facility, the SGD Testnet, for tokenized transactions, with financial institutions like DBS and Standard Chartered participating. MAS's announcements coincide with the Singapore Fintech Festival, where industry leaders will discuss technologies like AI and sustainable finance, with tokenization as a central topic.



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