Regulatory Innovation | Nov 16, 2023

Image by macrovector on Freepik

Singapore’s MAS Advances Asset Tokenization Initiatives Under Project Guardian.

Key Developments

• MAS is collaborating with 17 financial institutions to launch five new industry pilots. These pilots are exploring a range of tokenization use cases, potentially revolutionizing the capital markets value chain, including listing, distribution, trading, settlement, and asset servicing.

See:  Singapore Announces Project Guardian to the Value Created in Leveraging Asset Tokenization

• Innovative Pilots and Partnerships:
  • Citi, T. Rowe Price Associates, Inc., and Fidelity International are working on institutional-grade mechanisms for efficient digital asset trades.
  • BNY Mellon and OCBC are trialing a cross-border FX payment solution.
  • Ant International is developing a treasury management solution for real-time multi-currency clearing and settlement.
  • Franklin Templeton is exploring tokenized money market funds through a Variable Capital Company (VCC) structure.
  • J.P. Morgan and Apollo are focusing on digital assets for investment and management of discretionary portfolios.

• New Funds Workstream: Responding to the funds industry’s interest, MAS is launching a workstream focused on the native issuance of VCC funds on digital asset networks. This initiative will address various considerations, including tax, policy, and legal aspects, and aims to broaden distribution channels for asset managers.

Scaling Tokenized Markets

• Global Layer One (GL1) Initiative: MAS is working with international policymakers and financial institutions to design an open, digital infrastructure for hosting tokenized financial assets and applications. GL1 aims to facilitate cross-border transactions and ensure compliance with regulatory standards.
• Interlinked Network Model (INM): This model will provide a framework for exchanging digital assets across independent networks, allowing financial institutions to transact without being on the same network. A whitepaper detailing INM’s application and design considerations has been published.

See:  Bank of Canada Publishes Analytical Notes on DeFi

• International Collaboration: The inclusion of the International Monetary Fund (IMF) in Project Guardian’s policymaker group adds an international perspective to the project, focusing on policies and legal issues for cross-border platforms.

View the original release –> here

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

• SEO Powered Content & PR Distribution. Get Amplified Today.
• PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
• PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
• PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
• PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
• Source: https://ncfacanada.org/mas-update-asset-tokenization-in-project-guardian/