(31 May 2022 – Singapore) The Monetary Authority of Singapore (MAS) and finance industry has announced they are testing the feasibility of applications in asset tokenization and decentralized finance (DeFi) while working to manage risks to financial stability and integrity.
Singapore has commenced an official project to investigate potential uses of asset tokenization as the major financial hub seeks to establish itself as the preeminent destination for decentralized finance after several key crypto players withdrew. The project aims to develop and pilot use cases in areas such as open, interoperable networks, trust anchors and institutional-grade DeFi protocols. The first pilot in the project will explore potential DeFi applications in wholesale funding markets led by DBS, JPMorgan and Marketnode involves the creation of a permissioned liquidity pool comprising tokenized bonds and deposits.
“Through practical experimentation with the financial industry and the broader ecosystem, we seek to sharpen our understanding in this rapidly transforming digital assets ecosystem. The learnings from Project Guardian will serve to inform policy markets on the regulatory guardrails that are needed to harness the benefits of DeFi, while mitigating its risks” stated MAS Chief Fintech Officer, Sopnendu Mohanty.