Financial Organization Collaborates with MAS on Project Protector
Project Guardian: Global Collaboration for a Sustainable Digital Asset Ecosystem
Project Guardian, an international initiative led by the Monetary Authority of Singapore (MAS), is exploring the use of blockchain and asset tokenisation in financial markets. The primary goals of this collaborative effort between policymakers and the finance industry are to establish industry standards and frameworks for asset tokenisation, support its adoption across different asset classes, and promote a sustainable digital asset ecosystem to improve market efficiency and broaden access to investment products.
The latest development in Project Guardian sees the inclusion of two major asset management trade bodies: the UK's Investment Association (IA) and Singapore's Investment Management Association of Singapore (IMAS). This marks the first time domestic asset management trade bodies have joined the project, reflecting the growing interest in tokenised assets and fund modernisation through Distributed Ledger Technology (DLT).
Project Guardian currently involves 27 global institutions, including regulators and policymakers from six countries, as well as organisations like the IMF and World Bank. It has published work on foreign exchange, fixed income, and wealth and asset management.
Key goals and benefits emphasised by participants include enhancing cross-border access and investment efficiency, reducing transaction and operational costs, making investments more accessible and liquid for a wider range of investors, developing international coordination in regulation and standard setting to foster responsible innovation in digital assets, and leveraging tokenisation for more transparent and efficient market infrastructure.
Chris Cummings, CEO of the IA, has highlighted how tokenisation is a significant growth area and that blockchain and tokenised assets "are not constrained by borders," emphasising the importance of international collaboration through Project Guardian to design the future global financial system.
Carmen Wee, CEO of IMAS, has expressed support for Project Guardian, stating that tokenization offers real potential to enhance cross-border access, efficiency, and reduce costs, making investments more accessible. IMAS is committed to working with partners to build a resilient and interoperable ecosystem for tokenized assets, one where investors and managers better understand the opportunities and risks associated with them.
The Investment Association looks forward to working with MAS, IMAS, and all other Project Guardian participants to share market experiences and drive forward innovative regulatory developments for the benefits of investors across the globe. IMAS, in its comments, has reiterated its focus on enhancing liquidity and efficiency in financial markets through Project Guardian's asset tokenisation efforts.
In conclusion, Project Guardian aims to advance the global integration and acceptance of blockchain-based asset tokenisation by creating common standards and regulatory alignment, with recent involvement of major asset management trade bodies signalling deeper industry commitment and cross-border collaboration fostered by MAS. The potential of Project Guardian lies in its ability to improve financial inclusion and efficiency by making tokenised assets available to a wider audience.
- The collaboration between the Investment Association and Singapore's Investment Management Association of Singapore within Project Guardian highlights the growing interest in tokenised assets, as these organisations aim to leverage technology to make investments more liquid and accessible.
- Project Guardian's focus on enhancing liquidity and efficiency in financial markets through asset tokenisation efforts aligns with the goal of broadening access to investment products, ultimately improving market efficiency and promoting a sustainable digital asset ecosystem.
