Daniel Walker
The Monetary Authority of Singapore (MAS) has unveiled two new frameworks focused on advancing asset tokenization in the fixed-income and fund sectors. These initiatives, part of MAS’s Project Guardian, aim to support the growth of tokenized assets and enhance the efficiency of Singapore’s financial services.
One of the new frameworks, the “Guardian Fixed Income Framework,” is designed to guide the tokenization of debt capital markets. MAS highlighted that tokenizing fixed-income instruments can bring improved transparency, trading efficiency, and faster settlement times across the industry. The framework is intended to encourage the growth of tokenized fixed-income assets, making them more attractive and accessible to a diverse range of investors, issuers, banks, and service providers.
The second framework, called the “Guardian Funds Framework,” offers best-practice guidelines for the management and issuance of tokenized funds. The MAS included the “Guardian Composable Token Taxonomy” to assist in the development of diversified tokenized investment products, streamlining the creation of new tokenized funds and enhancing fund settlement efficiency.
Learn: What is Cryptocurrency?
Project Guardian, launched by MAS in 2022, has already completed more than 15 industry trials across six currencies and various financial products to explore the potential of asset tokenization in capital markets. The trials involved over 40 financial institutions and policymakers across seven jurisdictions.
To boost liquidity, MAS emphasized the potential for significant advancements in capital raising, secondary trading, asset servicing, and settlement through a broader, interconnected network of participants. The MAS also announced the formation of the “Guardian Wholesale Network,” which includes Citi, HSBC, Schroders, Standard Chartered, and UOB, with the objective of scaling up asset tokenization trials and fostering commercial adoption.
Leong Sing Chiong, MAS’s deputy managing director, remarked on the rising interest in asset tokenization, especially in areas like fixed income, foreign exchange, and asset management. As the Project Guardian trials show success, MAS is supporting commercialization efforts to ensure they progress in a coordinated, networked approach.
