The Australia and New Zealand Banking Group (ANZ) will explore the potential benefits of tokenizing real-world assets (RWA) in financial markets by joining Singapore’s Project Guardian initiative. ANZ will test how RWA, such as commercial paper, can work across blockchains by partnering with blockchain oracle firm Chainlink Labs and Singapore investment firm ADDX.

Project Guardian was launched by the Monetary Authority of Singapore in 2022 and aims to increase liquidity and efficiency in financial markets. ANZ will use Chainlink’s Cross-Chain Interoperability Protocol to move its Australian dollar-backed A$DC stablecoin more freely across blockchains.

Tokenized asset markets are currently “highly fragmented,” said ANZ banking services leader Nigel Dobson, adding that this slows adoption and complicates integration for financial institutions.

Project Guardian has previously run pilot programs with big names including S&P Global, Deutsche Bank and JPMorgan’s blockchain platform Onyx. How do you think the future of tokenized assets will shape? We look forward to your comments.