The Monetary Authority of Singapore (MAS) has declared its intention to support the commercialization of asset tokenization within the region. The regulator has recently unveiled two innovative sector frameworks aimed at fixed income pools and funds, as part of its ongoing efforts to bolster the commercialization of asset tokenization.
In an official statement released on November 4, the Monetary Authority of Singapore articulated its strategy to propel tokenization in financial services. These sector advancements will encompass the formation of trading networks to enhance the liquidity of tokenized assets, the development of a market infrastructure ecosystem, the promotion of industry frameworks for the execution of tokenized assets, and the provision of access to a universal settlement mechanism for tokenized assets.
The announcement underscored the authority’s agenda to “advance tokenization in financial services”. In line with this objective, two industry frameworks have been unveiled, both of which have been devised by members of the Guardian Project, with the goal of augmenting the efficiency of financial markets through tokenization.
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“To foster the adoption and execution of tokenized assets by financial institutions, two industry frameworks, created by members of the Project Guardian industry group, have been published today,” the statement detailed.
Guardian Fixed Income Framework (GFIF) – The GFIF amalgamates the International Capital Market Association’s Securities Data Taxonomy, the Capital Markets and Technology Association’s Token Standards, and the Global Financial Markets Association’s Design Principles for Tokenized Securities. It provides an industry guide for deploying tokenization in Debt Capital Markets, enhancing industry competencies, and catalyzing the acceptance of tokenized fixed income solutions.
Guardian Fund Framework (GFF) – The GFF offers a compilation of recommendations for industry best practices for tokenized funds. This includes the Guardian Composable Token Taxonomy to ease the development of tokenized investment vehicles composed of multiple assets, streamline the process of onboarding new tokenized funds, and facilitate efficiencies in fund settlement.
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