According to Cointelegraph, Japan’s financial regulator, the Financial Services Agency (FSA), announced a partnership with the Monetary Authority of Singapore (MAS) to conduct joint supervision and pilot testing under Singapore’s digital asset initiative “Project Guardian”.

At this stage, the FSA's participation will be limited to observer status. "The project aims to test the feasibility of digital technology applications such as asset tokenization through pilots while managing risks to financial stability and integrity. Current industry pilots include fixed income, foreign exchange, and asset and wealth management."

Project Guardian was established by MAS in May 2022 to test the "feasibility of asset tokenization and DeFi applications under appropriate regulations." The program has four focus areas, open and interoperable networks, trust anchors, asset tokenization, and institutional-grade DeFi protocols. In one of the projects under the program, "DBS Bank, JPMorgan Chase and SBI Digital Asset Holdings conducted foreign exchange and government bond transactions against a liquidity pool consisting of tokenized Singapore Government Bonds, Japanese Government Bonds, Japanese Yen (JPY) and Singapore Dollar (SGD)."