The Monetary Authority of Singapore (MAS), the country’s central bank and financial regulator, has revealed its planning to collaborate with several European countries and Japan.
“As the pilots grow in scale and sophistication, there is a need for closer cross-border collaboration among policymakers and regulators,” the MAS wrote.
On October 30, the MAS officially announced its partnership with Japan’s Financial Services Agency (FSA), Switzerland’s Financial Market Supervisory Authority (FINMA), and the United Kingdom’s Financial Conduct Authority (FCA).
The project’s objective also includes enabling industry pilots for digital assets within regulatory sandboxes, as stated in MAS’ announcement.
The regulators in Japan, SIngapore, Switzerland and the UK are planning to test asset tokenization for fixed income, foreign exchange and asset management products.
Tokenization, which digitizes real-world assets using the blockchain, is grabbing the interest of major financial institutions and banks worldwide because it has the potential to make global financial markets work more efficiently.
This project is built upon Singapore’s ongoing asset tokenization exploration, Project Guardian, which aims to address the legal and financial aspects of digital assets. It will analyze possible problems and shortcomings in policies related to digital assets.
Furthermore, Project Guardian will assist in testing digital asset initiatives within controlled regulatory environments known as sandboxes. This means that it will help digital asset projects experiment and develop in a safe and regulated space.