The Monetary Authority of Singapore (MAS) has released a report outlining a proposed framework for the creation of open, interoperable networks for digital assets, such as tokenized real-economy and financial assets.

The report, titled "Enabling Open & Interoperable Networks," was developed in collaboration with experts from the Bank for International Settlements (BIS) Committee on Payments and Market Infrastructure (CPMI), with contributions from various financial institutions.

The report also explores how the CPMI-IOSCO principles for financial market infrastructures can be applied to the evolving models of digital asset networks.

This is informed by industry pilots launched under Project Guardian, an initiative by MAS in collaboration with the financial industry to test the feasibility of asset tokenization and decentralized finance applications.

This effort is part of MAS' commitment to ensuring that emerging digital asset networks adhere to international standards promoting safe and efficient financial market infrastructure.

MAS also announced the expansion of Project Guardian to test the potential of asset tokenization across more financial asset classes.

To facilitate this, the Project Guardian Industry Group has been established, consisting of 11 financial institutions that will lead industry pilots in asset and wealth management, fixed income, and foreign exchange.

In the realm of asset and wealth management, pilots range from digitally structured products to tokenized investment vehicles.

The Japan Financial Services Agency (JFSA) has also joined Project Guardian, marking the first overseas financial regulator to do so.

Also Read: HSBC Jumps On The Crypto Train, Unleashes Bitcoin And Ethereum ETFs

This collaboration will allow MAS and the JFSA to work together on digital asset innovation and best practices for asset tokenization.

Leong Sing Chiong, deputy managing director (Markets and Development) at MAS, said, “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. This is why we are actively collaborating with the industry to foster a responsible and innovative digital asset ecosystem."

Mamoru Yanase, deputy director-general of the Strategy Development and Management Bureau at the Financial Services Agency, said, "We are delighted to join the Project Guardian. The decentralized financial ecosystem continues to develop in complexity, and it is important to address emerging risks. We look forward to working with MAS, traditional financial institutions, and FinTechs to further enhance our knowledge in this area.”

Read Next: Digital Asset Investments Skyrocket: Bitcoin Dominates With $188M Inflows

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.