On the implementation level, the new pilot project will include Initial Token Offerings (ITO) and secondary market trading, meaning that investors will be able to participate in the initial issuance of tokenized bonds and subsequently buy and sell them through regulated digital asset exchanges.
Written by: Aiying
Recently, SBI Digital Markets announced the strengthening of its role in the Monetary Authority of Singapore (MAS) 'Guardian Project' and launched a new pilot project aimed at promoting the application of tokenized securities in the global market. This announcement not only reflects the strategic layout of SBI Group's subsidiary in the fintech field but also marks its in-depth exploration of asset tokenization and cross-border digital asset trading. For more details, please refer to (【Interpretation】The Commercialization Plan of Asset Tokenization by the Monetary Authority of Singapore)
I. Background of the Guardian Project
The 'Guardian Project' is an innovation initiative launched by the Monetary Authority of Singapore (MAS) in 2022, aimed at exploring the potential of blockchain technology and decentralized finance (DeFi) within the traditional financial system. Through close collaboration with financial institutions and technology companies, the project tested how to effectively apply asset tokenization and DeFi technologies within a regulatory environment, hoping to foster a more resilient new financial market structure. Its ultimate goal is to consolidate Singapore's leading position in the global fintech field and to lead the innovation and popularization of tokenized assets.
Within the framework of the 'Guardian Project', the digitization of traditional financial assets is seen as an important way to enhance financial efficiency. The essence of tokenized assets is to transform real-world financial assets (such as bonds or real estate) into digital tokens that can be freely traded on the blockchain, thereby increasing the liquidity and market accessibility of these assets. This not only helps to reduce intermediary costs but also enhances market transparency and trading efficiency.
II. The Role of SBI Digital Markets and New Pilot Projects
As an important member of Japan's SBI Group, SBI Digital Markets has played a significant role in the 'Guardian Project' and continues to expand its influence. SBI Digital Markets is currently collaborating with multiple financial institutions to develop a cross-border framework specifically for tokenized securities. The core goal of this framework is to connect regulated digital asset exchanges across multiple regions to enhance the liquidity of tokenized assets and reduce trading costs. Through this global network connection, SBI Digital Markets hopes to achieve deeper integration of financial markets, breaking down barriers between existing markets, allowing tokenized assets to circulate and trade more efficiently on a global scale.
The newly launched pilot project specifically focuses on the fixed-income market, aiming to create a global network for securities backed by tokenized assets. This network covers the entire lifecycle from initial issuance to secondary market trading. Fixed-income assets typically include bonds, mortgage-backed securities, etc., and their tokenization can significantly enhance the trading convenience of these traditional assets. SBI Digital Markets is committed to optimizing all aspects of securities issuance to trading through this pilot project, making the trading cost of tokenized assets lower and transparency higher.
On the implementation level, the new pilot project will include Initial Token Offerings (ITO) and secondary market trading, meaning that investors will be able to participate in the initial issuance of tokenized bonds and subsequently buy and sell them through regulated digital asset exchanges.
III. Global Tokenization Trends and MAS's Strategic Intent
Asset tokenization is a means of digitizing real assets using blockchain technology. In recent years, asset tokenization has gradually gained attention globally due to its potential to enhance asset liquidity, reduce trading costs, and improve transparency. However, the lack of regulation and market uncertainty remain major obstacles to achieving large-scale applications. Singapore hopes to become a leading center for global asset tokenization through MAS's policy layout. The potential of asset tokenization has been well covered in Aiying's series on (Real World Assets RWAs).
The Rise of Asset Tokenization: Unveiling Exploration of Trillion-Dollar Market Opportunities
【RWAs Series】Infrastructure for Tokenization of Real World Assets
【RWAs Series】Current Status and Cases of Government Bond Tokenization
【RWAs Series】Tokenized Private Credit Markets and Use Cases【RWAs Series】Tokenization of Commodities and Real Estate Cases
【RWAs Series】Intellectual Property Tokenization Markets and Cases
【RWAs Series】Luxury Collectibles Tokenization Markets and Cases
【BIS Report Interpretation】: The Duality of Risks and Opportunities of Real World Assets (RWA) and Tokenization
Aiying believes that SBI Digital Markets' initiative is a reflection of global financial institutions gradually recognizing and actively adopting blockchain technology and asset tokenization. In this process, compliance and standards are not only a problem that must be solved but also the foundation for enterprises to gain long-term trust. In the future, with the advancement of the pilot project, Singapore is expected to become one of the centers for global tokenized securities trading, attracting more international capital and fintech companies.
However, there are still many challenges in driving this transformation. For example, how to coordinate regulatory differences across countries? How to ensure the compliance and security of cross-border transactions? These are issues that require further exploration and cooperation. The establishment of a framework for tokenized assets and cross-border transactions necessitates a fundamental rethinking of the trust mechanisms and risk control strategies within the financial system, which is precisely what Aiying is committed to providing in-depth compliance consulting and solutions for Web3 enterprises.