The Monetary Authority of Singapore (MAS) recently announced new initiatives to advance asset tokenization in the financial sector. The central bank aims to support its widespread adoption through targeted measures to enhance liquidity and infrastructure.
Commercial Networks to Boost Liquidity
On Monday, MAS shared its plans to establish commercial networks to deepen the liquidity of tokenized assets. This step is part of Project Guardian, which builds on MAS’s successful trials in applying asset tokenization within capital markets.
Industry Leaders Join Forces in Tokenization
Key financial institutions, including Citi, HSBC, Schroders, Standard Chartered, and UOB, have come together to form the Guardian Wholesale Network industry group. This collaborative initiative aims to create a multi-member network and advance the commercialization of asset tokenization.
Building Cross-Border Market Infrastructures
The MAS has also outlined plans to establish a robust ecosystem of market infrastructures. This setup will support seamless cross-border transactions. As part of this strategy, the central bank launched the Global Layer One (GL1) initiative, which aims to foster digital infrastructure development for commercial networks. Furthermore, the GL1 will include governance and risk control measures to ensure secure operations.
Establishing Standards for Tokenized Assets
MAS is also working on creating industry frameworks to facilitate tokenized asset implementation. Additionally, it aims to provide access to shared settlement facilities for smoother transactions.
MAS Deputy Managing Director Leong Sing Chiong highlighted the growing interest in asset tokenization, especially in fixed income, foreign exchange, and asset management. Speaking at the Layer One Summit on Monday, he emphasized MAS’s commitment to collaborating with financial institutions and policymakers. Together, they seek to create industry standards and risk management frameworks, ultimately enabling a broader rollout of tokenized capital market products across the financial landscape.
The post MAS Seeks Greater Momentum Towards Tokenization in Financial Services appeared first on Cryptonews.
