Singapore announces new plan and industry framework to promote tokenization commercialization

The Monetary Authority of Singapore (MAS) on Monday announced new plans to promote tokenization in the financial services sector, including forming a business network to deepen the liquidity of tokenized assets, developing an ecosystem of market infrastructure, and promoting tokenization. An industry framework for asset implementation, and the use of common settlement facilities to enable tokenized assets.

Leong Xinsong, deputy director-general (markets and financial development) of the Monetary Authority of Singapore, said: "In recent years, MAS has seen strong interest in asset tokenization, especially in fixed income, foreign exchange and asset management. We have a strong focus on financial institutions and other policies We are encouraged by the active participation of framers to create an industry standard and risk management framework to facilitate the commercial deployment of tokenized capital market products and expand the tokenized market at an industry level.”

In the past two years, MAS has convened more than 40 financial institutions, industry associations and international policymakers from seven jurisdictions under a collaborative industry initiative called "Project Guardian" to discuss the use of asset tokenization in capital markets. Conduct industrial trials. To date, the program has conducted more than 15 industrial trials on a variety of financial products in six currencies.

Implementing an industrial framework for tokenization

To facilitate widespread acceptance and implementation of tokenized assets by financial institutions, MAS has also released an industry framework developed by members of the Project Guardian industry group, according to the press release.

The Guardian Fixed Income Framework (GFIF) will provide guidance, strengthen capabilities and drive the adoption of tokenized fixed income solutions in debt capital markets. The Guardian Funds Framework (GFF) will provide recommendations on industry best practices for tokenized funds, including regulations for the development of tokenized investment vehicles composed of multiple assets.

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