Singapore to pilot digital asset trading with blockchain, tokenisation

Singapore has announced plans to pilot use cases of asset tokenisation and assess the feasibility of autonomous trading powered by blockchain technology. Efforts here will include the development of interoperable networks to facilitate digital asset trading as well as an evaluation of regulations needed to safeguard against potential risks. 

Called Projected Guardian, the initiative would see the Monetary Authority of Singapore (MAS) collaborate with industry players to explore the “economic potential” of asset tokenisation, the industry regulator said Tuesday.

By digitally representing assets or items of value through blockchain-powered smart contracts, tokenisation enabled high-value financial and real economy assets to be fractionalised and exchanged online, on a peer-to-peer basis. MAS noted that applying this to financial services such as borrowing, lending, and trading would allow these transactions to be performed autonomously, bypassing the need for intermediaries. 

It said such decentralised finance (DeFi) transactions potentially could enhance the efficiency, accessibility, and affordability of financial services as well as increase liquidity in financial markets and enhance economic inclusion. 

Through Project Guardian, Singapore hopes to pilot and assess the feasibility of applications in asset tokenisation and DeFi, along with managing the associated risks. Specifically, MAS said it would develop and pilot use cases across four focus areas

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