Singapore’s property token is ahead with new MAS frameworks.
The Monetary Authority of Singapore (MAS) has announced a multi-faceted effort to promote asset tokenization. To achieve its goals, MAS has drawn from various projects and developed new frameworks to provide guidance.
Expanding successful simulation experiments
At the first meeting of MAS Layer One, Deputy Manager Leong Sing Cheong reviewed the achievements of large financial institutions participating in Project Guardian in demonstrating the ability to tokenize foreign currencies and funds. More than 40 institutions in seven regions conducted more than 15 trials using six currencies.
The central banker identified the limitations of those experiments:
“No one has really succeeded in achieving scale. Many promising use cases have yet to gain industry-wide interest. In addition, a supporting infrastructure is needed to scale good use cases beyond private networks.”
To deploy tokenized assets at scale, liquidity, infrastructure, standardized frameworks and common settlement assets are needed, he said. MAS is dealing with each case.
Source: Chainlink
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A master plan for business.
In the year Launched in 2022, Project Guardian will facilitate deep liquidity through capital raising, secondary trading and asset servicing and settlement, MAS said in a statement.
MAS Global Layer One, launched in 2023 to address infrastructure needs and developed by BNY, Citi, JPMorgan, MUFG and Societe Generale-FORGE, will expand its scope next year. Euroclear and HSBC will join the initiative as it develops its usage principles and ecosystem.
The Project Guardian industry group created two frameworks for token implementations that were published on November 4. The Guardian Fixed Income Framework integrates international organizations' standards and principles to guide the application of tokenization in debt capital markets.
The Guardian Funds Framework recommends best practices for fund tokenization. This includes the Guardian Composable Token Taxonomy.
Finally, SGD Testnet will be ready to facilitate mutually agreeable funding for payments and collateral. Project Guardian and Project Orchid participants will participate using the Singapore dollar as a central bank digital currency (CBDC).
Project Orchid developed retail CBCC use cases and introduced the concept of purpose-based cash – a type of programming capability – which was implemented on the testnet.
When a project hits its goal, it's the next logical step. mBridge announced its launch in October 2023 as the smallest viable product.
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