Singapore to Look at Crypto Use Cases With DBS and JPMorgan – The Monetary Authority of Singapore (MAS), the country’s central bank, announced Tuesday that it has launched Project Guardian in collaboration with the financial services industry.
Project Guardian is a “collaborative initiative with the financial industry that aspires to examine the economic possibilities and value-adding use cases of asset tokenization” and decentralized finance, according to the central bank.
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At the Asia Tech x Singapore Summit on Tuesday, Heng Swee Keat, Singapore’s deputy prime minister and coordinating minister for economic strategies, announced the start of Project Guardian.
The first industry trial under Project Guardian would look into potential defi applications in wholesale funding markets, according to the MAS. Adding:
“The pilot comprises the creation of a permissioned liquidity pool of tokenized bonds and deposits, led by DBS Bank Ltd., JP Morgan, and Marketnode.”
“Through the execution of smart contracts, the pilot aims to carry out secured borrowing and lending on a public blockchain-based network,” the MAS stated.
The MAS is “closely actively monitoring innovative ideas and growth in the digital asset ecosystem as well as working through to the possible risks and opportunities which come with new technologies — to investors, consumers, as well as the financial system at large,” according to Sopnendu Mohanty, the central bank’s chief fintech officer.
Singapore to Look at Crypto Use Cases With DBS and JPMorgan – “The Project Guardian learnings will serve to advise policy markets on the regulatory guardrails that are required to harness the benefits of defi while reducing its risks,” he noted.
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DBS, Southeast Asia’s largest bank head of group planning and strategy, Han Kwee Juan, said:
“DBS is delighted to be leading the charge to investigate new digital assets and the usage of defi principles that will improve trading, clearing, and settlement efficiency and scalability while reducing risks to financial stability and integrity.”