Singapore’s Central Bank, DBS, JPMorgan Collaborate to Explore Uses of Digital Assets, Defi

Singapore’s Central Bank, DBS, JPMorgan Collaborate to Explore Uses of Digital Assets, Defi Under New Project Guardian

The Monetary Authority of Singapore (MAS) has actually partnered with significant banks and monetary services business to explore the uses of possession tokenization and decentralized financing (defi). DBS Bank and JPMorgan will pilot the very first task.

Project Guardian Launched

The Monetary Authority of Singapore (MAS), the nation’s reserve bank, revealed Tuesday that it has actually partnered with the monetary services market to launchProject Guardian The reserve bank explained Project Guardian as “a collaborative initiative with the financial industry that seeks to explore the economic potential and value-adding use cases of asset tokenization” and decentralized financing (defi).

Heng Swee Keat, Singapore’s deputy prime minister and collaborating minister for financial policies, revealed the beginning of Project Guardian Tuesday at the Asia Tech xSingapore Summit

“The first industry pilot under Project Guardian will explore potential defi applications in wholesale funding markets,” the MAS detailed, including:

The pilot, led by DBS Bank Ltd., JP Morgan, and Marketnode, includes the development of a permissioned liquidity swimming pool consisting of tokenized bonds and deposits.

“The pilot aims to carry out secured borrowing and lending on a public blockchain-based network through execution of smart contracts,” the MAS continued.

Sopnendu Mohanty, primary fintech officer at the central bank, discussed that the MAS is “closely monitoring innovations and growth in the digital asset ecosystem and working through the potential opportunities and risks that come with new technologies — to consumers, investors, and the financial system at large.”

He kept in mind: “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.”

Han Kwee Juan, head of group preparation and method at DBS, Southeast Asia’s biggest bank, commented:

DBS is happy to lead the charge to explore prospective digital assets and usage of defi principles that will improve performance and scalability in trading, cleaning, and settlement; while handling dangers to monetary stability and stability.

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