MAS partners foreign financial regulators on tokenisation of funding markets

THE Monetary Authority of Singapore (MAS) will be partnering financial regulators from Japan, Switzerland and the United Kingdom to advance digital asset pilots in fixed income, foreign exchange and asset management products.

These four financial regulators will form the policymaker group of Project Guardian, which is a collaborative effort by MAS and industry players to explore potential decentralised finance applications in wholesale funding markets.

The policymaker group aims to advance discussions on legal, policy and accounting treatment of digital assets, as well as identify potential risks and possible gaps in existing policies and legislation relevant to tokenised solutions, said MAS in a media release on Monday (Oct 30).

The group also intends to:

• explore the development of common standards for the design of digital asset networks and market best practices across various jurisdictions;
• promote high standards of interoperability to support cross-border digital assets development;
• facilitate industry pilots for digital assets through regulatory sandboxes; and
• promote knowledge sharing among regulators and industry.

Leong Sing Chiong, deputy managing director for markets and development at MAS, said there is a strong desire among policymakers to deepen their understanding of the opportunities and risks arising from digital asset innovation.

“Through this partnership, we hope to promote the development of common standards and regulatory frameworks that can better support cross border interoperability, as well as sustainable growth of the digital asset ecosystem,” he added.