The Monetary Authority of Singapore (MAS) has announced ambitious plans to advance tokenization in financial services through its Project Guardian initiative. The regulator aims to create commercial networks that deepen liquidity for tokenized assets and coordinate commercialization efforts across the industry.
Project Guardian: Over 40 Institutions Join Forces
According to a Nov. 4 statement, MAS has assembled a group of more than 40 financial institutions, associations, and policymakers to conduct trials of asset tokenization in capital markets. As part of this effort, banking giants Citi, HSBC, Schroders, Standard Chartered, and UOB have formed the Guardian Wholesale Network industry group to commercialize their respective asset tokenization trials and scale usage.
Leong Sing Chiong, deputy managing director of MAS, commented: “MAS has seen strong interest in asset tokenisation 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 tokenised capital markets products, and scale tokenised markets on an industry wide basis.”
Expanding GL1 Platform for Cross-Border Trading
To further deepen liquidity, MAS is expanding the scope of its Global Layer One (GL1) platform. Launched in 2023 to foster foundational digital infrastructures, GL1 will now support the development of an ecosystem of compatible market infrastructures, enabling seamless trading of tokenized assets across borders. This includes aligning governance, risk management controls, and settlement arrangement conventions.
Two New Industry Frameworks Introduced
MAS also unveiled two industry frameworks developed by Project Guardian industry group members. 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.
These frameworks are expected to standardize tokenization practices, reduce compliance costs, and accelerate market adoption. Industry observers note that Singapore’s proactive stance on tokenization could solidify its position as a leading global digital asset hub.