Tokenization use cases are being tested by the central bank of Singapore in collaboration with leading financial services companies such as JPMorgan (JPM), DBS (D05), and BNY Mellon (BK).
The Monetary Authority of Singapore (MAS) announced on Wednesday that the tests will look at fund management, automated portfolio rebalancing, multicurrency clearing and settlement, foreign currency payments, bilateral digital asset trades, and fund management.
As part of the project, JPMorgan and Apollo conducted a “proof of concept” to show how asset managers could tokenize funds on the blockchain. These announcements were made concurrently with the MAS statement. The project is a part of Project Guardian, an effort to promote asset tokenization by a group of policymakers that includes the Financial Services Agency (FSA) of Japan, the Financial Conduct Authority (FCA) of the United Kingdom, and the Swiss Financial Market Supervisory Authority (FINMA).
In order to facilitate cross-border transactions and enable the trading of tokenized assets across international liquidity pools, the MAS is also investigating the design of a digital infrastructure known as Global Layer One (GL1) to host tokenized assets and applications.
In order to facilitate cross-border transactions and enable the trading of tokenized assets across international liquidity pools, the MAS is also investigating the design of a digital infrastructure known as Global Layer One (GL1) to host tokenized assets and applications.
The most well-known mainstream financial institutions in the world are interested in digital asset technology’s use case of tokenization, or the minting of real assets as blockchain-based tokens. This is because tokenization has the potential to streamline processes and make them more cost-effective and efficient.