Regulators seek common ground on digital asset frameworks
The Monetary Authority of Singapore (MAS) announced today that it is collaborating with regulators in Japan, the UK, and Switzerland to advance digital asset innovation through pilots focused on asset tokenization.
Under Project Guardian, an initiative led by MAS, the Financial Services Agency of Japan (FSA), the UK's Financial Conduct Authority (FCA) and the Swiss Financial Market Supervisory Authority (FINMA) will work together to facilitate cross-border collaboration and develop common standards around digital assets.
The regulators aim to explore legal frameworks, identify potential risks, establish best practices, and promote interoperability in digital asset networks and tokenization. They will also facilitate industry pilots through regulatory sandboxes where applicable.
MAS has already been collaborating with 15 financial institutions in Singapore on asset tokenization pilots in fixed income, foreign exchange, and asset management under Project Guardian. The regulators hope to build on these efforts and scale tokenization across borders.
"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," said Leong Sing Chiong, Deputy Managing Director at MAS. "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."
Tokenization involves representing real-world assets like bonds, stocks and real estate on a blockchain. It has the potential to increase efficiency in global financial markets. Regulators worldwide are experimenting with asset tokenization as the technology gains traction.
