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The Monetary Authority of Singapore (MAS) has partnered with JPMorgan (NYSE:), DBS Bank, BNY Mellon and investment firm Apollo to conduct a series of tests on asset tokenization. This collaborative effort is part of the broader Project Guardian, which aims to integrate digital assets into traditional finance while considering regulatory compliance, cybersecurity and equitable access.
The trials, which began today, are exploring a range of applications, including bilateral exchanges of digital assets, foreign currency payments, multi-currency clearing and settlement procedures, fund management protocols and mechanisms. automated portfolio rebalancing. These tests are essential steps toward creating a more efficient and secure financial infrastructure.
In a significant move demonstrating the practical application of this technology, JPMorgan and Apollo also unveiled a “proof of concept” for tokenizing funds on the blockchain.
The development of a digital infrastructure called Global Layer One (GL1) is one of the key points of this collaboration. GL1 aims to host tokenized assets and applications that could accelerate cross-border transactions and enable seamless trading between global liquidity pools. The project involves international regulators, including the Financial Services Agency (FSA) of Japan, the Financial Conduct Authority (FCA) of the United Kingdom and the Swiss Financial Market Supervisory Authority (FINMA), which demonstrates its global reach.
The testing of these tokenization applications is not only an important milestone for MAS and its partners, but also marks a significant development in the broader financial technology context. It aligns with recent moves by other financial institutions seeking to leverage blockchain technology. For example, SC Ventures, a division of Standard Chartered (LON:), launched Libearto to create a tokenized Singapore dollar government bond fund for accredited investors, in partnership with FundBridge Capital.
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