Singapore doubles down on tokenization: announces new plans

The Monetary Authority of Singapore (MAS) has unveiled new plans for tokenization in financial services. MAS aims to increase liquidity and strengthen the ecosystem for tokenized assets. Key steps include forming commercial networks, building market infrastructure, and establishing industry frameworks. MAS will also enable access to shared settlement facilities for tokenized assets.

• MAS reports growing interest in tokenization, especially in fixed income, foreign exchange, and asset management.
• MAS aims to create standards and risk frameworks for using tokenized capital market products commercially.
• Project Guardian, MAS’s crypto industry group, has issued two frameworks for tokenized asset adoption in finance.

Project Guardian includes over 40 financial institutions, industry associations, and international policymakers from seven regions. It is central to MAS’s tokenization efforts. Under Project Guardian, leading firms like Citi, HSBC, Schroders, Standard Chartered, and UOB formed the “Guardian Wholesale Network.” This group will create a multi-member network to scale and commercialize asset tokenization trials.

The Guardian Fixed Income Framework offers guidelines for applying tokenization to debt markets. It also aims to boost capabilities and drive adoption of tokenized fixed income products. Similarly, the Guardian Funds Framework outlines best practices for tokenized funds. It promotes the development of tokenized investment options that combine multiple assets.

Through these measures, MAS is making strides in establishing Singapore as a global leader in asset tokenization. The focus is on creating a secure and resilient ecosystem for tokenized assets in capital markets.