The Monetary Authority of Singapore (MAS) has officially launched Project Guardian, a major initiative to commercialize tokenized assets by creating collaborative commercial networks and deepening liquidity. Announced on November 4, 2024, the regulator has assembled more than 40 financial institutions, associations, and policymakers to conduct trials of asset tokenization in capital markets.
Wholesale Network and Key Participants
As part of Project Guardian, banking giants Citi, HSBC, Schroders, Standard Chartered, and UOB have formed the Guardian Wholesale Network industry group to commercialize their respective tokenization trials and scale usage. Leong Sing Chiong, Deputy Managing Director of MAS, stated: “MAS has seen strong interest in asset tokenization in recent years, notably in fixed income, FX, and asset management. We are encouraged by the keen participation from financial institutions and fellow policymakers to co-create industry standards and risk management frameworks to facilitate commercial deployment of tokenized capital markets products.”
Expansion of Global Layer One (GL1) Platform
MAS is also expanding the scope of its Global Layer One (GL1) platform, which was launched in 2023 to foster foundational digital infrastructure. The expanded GL1 will support the development of an ecosystem of compatible market infrastructures, enabling seamless cross-border trading of tokenized assets. This includes aligning governance, risk management controls, and settlement arrangement conventions.
Industry Frameworks: GFIF and GFF
Project Guardian industry members unveiled two key frameworks. The Guardian Fixed Income Framework (GFIF) integrates the International Capital Market Association’s Bond Data Taxonomy, the Capital Markets and Technology Association’s Token Standards, and the Global Financial Markets Association’s Design Principles for Tokenized Securities. The Guardian Funds Framework (GFF) provides a set of recommendations for industry best practices for tokenized funds, covering issuance, redemption, and secondary trading processes.
Significance and Outlook
This initiative positions Singapore as a global hub for tokenized financial assets, enhancing efficiency, transparency, and accessibility in capital markets. With the backing of major financial institutions and a clear regulatory framework, Project Guardian could accelerate the adoption of blockchain-based financial products and set a precedent for other jurisdictions.