Singapore Pushes for Commercialization of Tokenization

• Singapore has announced new plans to advance tokenization.

• It published two frameworks on the acceptance and implementation of tokenized assets by financial institutions.

The Monetary Authority of Singapore (MAS) will introduce new measures to advance tokenization in financial services.

The regulator said it will form commercial networks to deepen liquidity of tokenized assets, developing an ecosystem of market infrastructures, fostering industry frameworks for tokenized asset implementation and enabling access to common settlement facilities for tokenized assets.

“MAS has seen strong interest in asset tokenization in recent years, notably in fixed income, FX, and asset management. We are encouraged by the keen participation from financial institutions and fellow policymakers to co-create industry standards and risk management frameworks to facilitate commercial deployment of tokenized capital markets products, and scale tokenized markets on an industry wide basis,” said Leong Sing Chiong, deputy managing director (Markets and Development) of MAS.

Its crypto industry group, Project Guardian also published two frameworks on acceptance and implementation of tokenized assets by financial institutions. Project Guardian includes 40 financial institutions, industry associations and international policymakers across seven jurisdictions.

The Guardian Fixed Income Framework will provide guidelines on implementing tokenization in debt capital markets, strengthen capabilities and catalyze adoption of tokenized fixed income solutions.

Meanwhile, the Guardian Funds Framework will provide recommendations for industry best practices for tokenized funds, including provisions to develop tokenized investment vehicles comprising multiple assets.