MAS proposes framework for digital asset networks
28 July 2023
On 26 June 2023, the Monetary Authority of Singapore (“MAS”) issued a press release announcing the publication of its report which proposes a framework for designing open, interoperable networks for digital assets (i.e. tokenised real-economy and financial assets). The report “Enabling Open & Interoperable Networks” was jointly developed with subject matter experts at the Bank for International Settlements’ Committee on Payments and Market Infrastructure (“CPMI”), with contributions from participating financial institutions.
The report also considers how the CPMI-International Organization of Securities Commissions (IOSCO) principles for financial market infrastructures can be applied to evolving models of digital asset networks, taking reference from industry pilots launched under Project Guardian, which is MAS’ collaborative initiative with the financial industry to test the feasibility of applications in asset tokenisation and decentralised finance. The report is part of MAS’ effort to ensure that emerging digital asset networks are underpinned by international standards which promote safe and efficient financial market infrastructure.
MAS also announced an expansion of Project Guardian to test the potential of asset tokenisation across more financial asset classes. To support this, MAS has established the Project Guardian Industry Group, comprising 11 financial institutions which will lead industry pilots in asset and wealth management, fixed income, and foreign exchange. More information on the industry pilots is set out in the press release.
Reference materials
The following materials are available on the MAS website www.mas.gov.sg: