Singapore’s financial regulator has released a plan to support the commercialization of asset tokenization.
The Monetary Authority of Singapore (MAS) announced at this week’s Insights Forum in Singapore its plans to advance asset tokenization and support its commercialization. According to the statement, these efforts will include establishing commercial networks, building a market infrastructure ecosystem, promoting industry frameworks, and providing access to a shared settlement facility.
To meet its goals, the regulator has made various efforts including a collaborative initiative between policy markets and financial firms called «Project Guardian», the «Global Layer One» initiative for the development of a multi-purpose, shared ledger infrastructure, the creation of frameworks for fixed income and fund tokenization, and the formation of a common settlement test network.
Market Interest
According to Leong Sing Chiong, deputy managing director (markets and development) at MAS, the regulator has seen «strong interest» in asset tokenization in recent years specifically for fixed income, FX and asset management.
«We are encouraged by the keen participation from financial institutions and fellow policymakers to co-create industry standards and risk management frameworks to facilitate commercial deployment of tokenized capital markets products, and scale tokenized markets on an industry-wide basis,» he added.
