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MAS Advances Commercialisation of Financial Services Tokenisation

Singapore
Monetary Authority of Singapore
Blockchain, Payments, Technology

(6 November 2024 – Singapore) The Monetary Authority of Singapore (MAS) is seeking to drive financial services asset tokenisation plans forward to hasten commercialisation of the sector.

 

The MAS is facilitating the connection of a broader set of products and services from participants of its tokenisation projects to multiple currencies and assets. This is anticipated to improve fund raising, secondary trading, asset servicing and settlement of tokenised assets. Tokenisation is the process of digitally representing real and physical assets such as bonds and equities on the blockchain.

 

MAS will expand the activities undertaken via its Global Layer One (GL1) initiative. GL1 was launched in 2023 to design an open digital infrastructure of international standard.

 

The plans fall under the MAS Project Guardian launched in May 2022 which explores the use of asset tokenisation in capital markets. The project has incorporated over 40 financial institutions, industry associations and international policymakers across seven jurisdictions including ANZ, the World Bank and Deutsche Bank.

 

“The role of this policymaker group is important as they help provide inputs on governance arrangements, guidance on how GL1 infrastructures can be developed in line with global standards and provide advice on appropriate regulatory guardrails for tokenised asset transactions” commented MAS Deputy Managing Director, Leong Sing Chiong.

 

“For tokenisation to achieve industry-wide adoption, there needs to be deeper liquidity in this area in the primary and secondary markets. To support the formation of commercial networks, and to enable seamless transactions of tokenised assets across networks, there needs to be a digital infrastructure that meets the needs of regulated financial institutions.”

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