Singapore's MAS Proposes Design Framework for Interoperable Digital Asset Networks

Banking giants like Standard Chartered, HSBC and Citi are set to run multiple tokenization trials across wealth management, fixed income and foreign exchange.

AccessTimeIconJun 26, 2023 at 11:26 a.m. UTC
Updated Jun 26, 2023 at 8:22 p.m. UTC

Singapore's central bank is proposing ways to design open, interoperable networks for tokenized digital assets.

The Monetary Authority of Singapore (MAS) presented the framework in a Monday report, which was produced in collaboration with the Bank for International Settlements’ (BIS) and other financial institutions.

The initiative, Project Guardian, has enlisted 11 institutions to test asset tokenization across financial asset classes. Pilot studies across wealth management, fixed income and foreign exchange will be carried out by banking giants such as HSBC, Standard Chartered, DBS and Citi, according to the announcement.

Standard Chartered, for instance, is developing an initial token offering platform to issue asset-backed security tokens listed on the Singapore Exchange. The bank will work with payments platform Linklogis.

“The initial pilot trade conducted in collaboration with Singapore Exchange and Linklogis proves the viability of assets-backed tokenization as an innovative originate-to-distribute structure, and the potential opportunities it presents to investors to participate in financing real-world economic activity," said Kai Fehr, global head of trade and working capital at Standard Chartered, in a statement.

Singapore's central bank is no fan of the crypto ecosystem, but has stated its commitment to promoting the technologies of the industry to improve existing traditional financial systems.

“While MAS strongly discourages and seeks to restrict speculation in cryptocurrencies, we see much potential for value creation and efficiency gains in the digital asset ecosystem," said Leong Sing Chiong, MAS' deputy managing director of markets and development, in the statement.

Last week, the MAS proposed standards for the use of digital money, including central bank digital currencies (CBDCs) and stablecoins.

Ian Allison contributed reporting.

Edited by Sheldon Reback.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Sandali Handagama

Sandali Handagama is CoinDesk's deputy managing editor for policy and regulations, EMEA. She does not own any crypto.