The Monetary Authority of Singapore (MAS) has announced substantial new measures to drive the adoption of tokenized assets across the financial sector, focusing on building commercial networks, liquidity, and comprehensive frameworks for this technology. By creating infrastructures that support both liquidity and interoperability of tokenized assets, MAS aims to foster a supportive environment for financial services that incorporate tokenization. This includes areas like fixed income, foreign exchange (FX), and asset management, where MAS has observed substantial interest in tokenization from industry stakeholders and global policymakers.

Central to these efforts is Project Guardian, an MAS-led initiative launched in 2022 that now involves over 40 participants, including financial institutions and regulators from seven countries. Project Guardian has introduced two core frameworks: the Guardian Fixed Income Framework (GFIF) and the Guardian Funds Framework (GFF). The GFIF targets tokenization in debt capital markets by providing guidelines to streamline processes and boost adoption in fixed-income sectors. Meanwhile, the GFF aims to standardize practices in tokenized funds, enabling a more efficient pathway to create diverse investment vehicles with tokenized assets. Through these frameworks, MAS intends to reduce market fragmentation and increase accessibility to tokenized solutions across the financial ecosystem.

In tandem with Project Guardian, MAS is launching initiatives such as the Global Layer One (GL1) platform. This platform is designed to build a foundational, cross-border infrastructure that aligns standards, compliance, and governance for tokenized assets, thereby ensuring operational consistency across markets. Additionally, MAS is exploring settlement solutions, including the Singapore Dollar wholesale CBDC, to facilitate tokenized transactions through a “common settlement facility,” which aims to support interoperability and reduce transaction risks.

These strategic advancements underscore MAS’s commitment to establishing Singapore as a leading center for digital asset finance and to accelerating the global adoption of tokenized financial services by setting up industry-wide standards, testing infrastructure, and scaling solutions across borders. Through Project Guardian and collaborative frameworks, MAS is setting the groundwork for a more integrated, efficient, and accessible digital financial market.

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