Central Bank of Singapore, DBS and JPMorgan Collaborate to Explore Uses of Digital Assets, Defi CryptoBlog

The Monetary Authority of Singapore (MAS) has partnered with major banks and financial services companies to explore the uses of asset tokenization and decentralized finance (defi). DBS Bank and JPMorgan will pilot the first project.

Launch of the Guardian Project

The Monetary Authority of Singapore (MAS), the country’s central bank, announced on Tuesday that it has partnered with the financial services industry to launch Project Guardian. The central bank described Project Guardian as “a collaborative initiative with the financial industry that seeks to explore the economic potential and value-added use cases of asset tokenization” and decentralized finance (defi).

Heng Swee Keat, Singapore’s Deputy Prime Minister and Coordinating Minister for Economic Policy, announced the launch of Project Guardian on Tuesday at the Asia Tech x Singapore Summit.

“The industry’s first pilot under Project Guardian will explore potential challenge applications in wholesale funding markets,” MAS detailed, adding:

The pilot project, led by DBS Bank Ltd., JP Morgan and Marketnode, involves the creation of a licensed liquidity pool comprising tokenized bonds and deposits.

“The pilot aims to perform secure borrowing and lending on a public blockchain-based network through the execution of smart contracts,” MAS continued.

Sopnendu Mohanty, director of financial technology at the central bank, explained that the MAS “closely monitors innovations and growth in the digital asset ecosystem and works on the opportunities and potential risks that come with new technologies – for consumers, investors and the financial system in general.

He noted, “Learnings from Project Guardian will serve to inform political markets about the regulatory safeguards needed to harness the benefits of the challenge while mitigating its risks.”

Han Kwee Juan, head of group planning and strategy at DBS, Southeast Asia’s largest bank, said:

DBS is pleased to lead the charge to explore potential digital assets and the use of challenge concepts that will improve efficiency and scalability in trading, clearing and settlement; while managing risks to financial stability and integrity.

What do you think of this initiative? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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