Regulators from Singapore, Japan, the United Kingdom (UK), and Switzerland have unveiled plans to conduct asset tokenisation trials encompassing fixed income, foreign exchange, and asset management products.
This collaboration, known as Project Guardian, is spearheaded by the Monetary Authority of Singapore (MAS) and includes key authorities like Japan’s Financial Services Agency (FSA), the UK’s Financial Conduct Authority (FCA), and the Swiss Financial Market Supervisory Authority (FINMA).
Their collective mission is to foster cross-border cooperation in the realm of asset tokenisation.
Notably, this collaborative effort extends to fifteen financial institutions, including heavyweights such as JPMorgan, SBI Digital Assets Holdings, Citi, Franklin Templeton, Hong Kong and Shanghai Banking Corporation, and Standard Chartered, which are actively engaged in industry pilots concentrating on tokenising assets within fixed-income, foreign exchange, and asset management domains.
Tokenisation, characterised by the digitisation of real-world assets through blockchain technology, has seized the attention of global financial institutions and banking titans.
Major economies are now testing the issuance of bonds and the tokenisation of funds, with the aim of enhancing the efficiency of global financial markets.
Within the scope of Project Guardian, stakeholders are dedicated to deliberating the legal and accounting treatment of digital assets, identifying potential risks, and assessing policy gaps.
Furthermore, they are actively working towards the formulation of common standards that can guide the design of digital asset markets and facilitate best practices spanning various jurisdictions.
Additionally, Project Guardian is committed to streamlining industry pilots for digital assets through regulatory sandboxes, where innovative ideas can be tested in controlled environments.
This multifaceted initiative is not merely aimed at shaping the legal, policy, and accounting landscape for digital assets; it also seeks to pinpoint potential risks and regulatory voids while establishing a framework that promotes high levels of interoperability for cross-border digital asset development.
Leong Sing Chiong, MAS deputy managing director, has highlighted the profound commitment among policymakers to delve into the intricacies surrounding digital asset innovation:
“MAS’ partnership with FSA, FCA and FINMA shows a strong desire among policymakers to deepen our understanding of the opportunities and risks arising from digital asset innovation. Through this partnership, we hope to promote the development of common standards and regulatory frameworks that can better support cross-border interoperability, as well as sustainable growth of the digital asset ecosystem.”
This partnership signifies a collective desire to further explore the opportunities and risks associated with this transformative space.
Through this partnership, MAS aspires to propel the growth of common standards and regulatory frameworks that can underpin cross-border interoperability and the sustainable expansion of the digital asset ecosystem.