Singapore Launches New Pilots to Test Asset Tokenization

Project Guardian Aims to Scale Tokenized Markets

The Monetary Authority of Singapore (MAS) has introduced five new pilots as part of Project Guardian, an initiative led by Singapore's central bank. The project aims to develop new financial infrastructure using decentralized finance (DeFi) elements. The latest pilots will focus on testing various use cases for asset tokenization, with the goal of catalyzing institutional adoption of digital assets and increasing the efficiency of financial markets.

Financial Institutions Collaborate on Pilot Programs

Among the 17 financial institutions participating in Project Guardian, Citi, T. Rowe Price Associates, Inc., and Fidelity International are testing bilateral digital asset trade mechanisms. They are also exploring real-time post-trade reporting and analytics for digital asset trades. Ant Group is testing a treasury management solution to enhance liquidity management funding globally. BNY Mellon and OCBC are responsible for testing a cross-border FX payment solution for payments across different networks. Franklin Templeton is testing the issuance of a tokenized money market fund. J.P. Morgan and Apollo are collaborating on digital asset solutions to streamline asset servicing processes.

Global Layer One and Interlinked Network Model

In addition to the pilot programs, MAS has launched Global Layer One (GL1), which aims to design an open digital infrastructure for hosting tokenized financial assets and applications. The central bank has also worked with the financial industry to develop an Interlinked Network Model (INM), a common framework for exchanging digital assets across independent networks among financial institutions.

International Monetary Fund Joins Project Guardian

The International Monetary Fund (IMF) has been included as one of the policymakers in Project Guardian. Their involvement will contribute to shaping the future of asset tokenization and decentralized finance in Singapore.