A recent announcement on Monday stated that asset tokenization tests for fixed income, foreign exchange, and asset management products are being planned by regulators in Singapore, Japan, the United Kingdom, and Switzerland.
The Financial Services Agency (FSA) of Japan, the Financial Conduct Authority (FCA) of the United Kingdom, and the Swiss Financial Market Supervisory Authority (FINMA) are among the policymakers that the Monetary Authority of Singapore (MAS) established Project Guardian to promote international cooperation in asset tokenization.
With major economies testing bond issuance and fund tokenization to potentially improve the efficiency of global financial markets, tokenization—the digitization of physical assets using the blockchain—is the talk of the town among global banking giants and institutions.
The goals of Project Guardian include addressing how digital assets are treated legally and accountingly, spotting policy gaps and possible hazards, and creating uniform guidelines for best practises in digital asset markets across national borders.
As per MAS’ announcement, the project aims to enable industry pilots for digital assets by means of regulatory sandboxes.
Leong Sing Chiong, a deputy managing director of MAS, stated in a statement that “MAS’ partnership with FSA, FCA, and FINMA shows a strong desire among policymakers to deepen our understanding of the opportunities and risks arising from digital asset innovation.”