Singapore Unveils Multi-Pronged Strategy to Scale Asset Tokenization in Financial Markets
The Monetary Authority of Singapore (MAS) announced today comprehensive plans to advance the commercialization of asset tokenization, marking a significant shift from experimental trials to real-world implementation in financial markets.
In a strategic move to expand its successful Project Guardian initiative, which has already conducted over 15 industry trials across six currencies, MAS unveiled several key measures aimed at deepening market liquidity and establishing robust infrastructure for tokenized assets.
A cornerstone of this expansion is the formation of the Guardian Wholesale Network, bringing together financial heavyweights including Citi, HSBC, Schroders, Standard Chartered, and UOB. This industry group will focus on scaling tokenization initiatives and fostering interconnected trading networks for digital assets.
Two new frameworks were introduced to standardize industry practices. The Guardian Fixed Income Framework (GFIF) integrates international standards for implementing tokenization in debt capital markets, while the Guardian Funds Framework (GFF) establishes best practices for tokenized investment vehicles.
“MAS has seen strong interest in asset tokenization in recent years, notably in fixed income, FX, and asset management,” said Leong Sing Chiong, Deputy Managing Director (Markets and Development) of MAS. “We are encouraged by the keen participation from financial institutions and fellow policymakers to co-create industry standards and risk management frameworks.”
To facilitate seamless cross-border transactions, MAS is expanding its Global Layer One (GL1) initiative, welcoming new participants including Euroclear and HSBC. The initiative will focus on developing control principles, specifications, and programmable compliance measures for digital asset securities.
In a significant development for settlement infrastructure, MAS announced the launch of SGD Testnet, which will enable eligible financial institutions to settle transactions using Singapore dollar wholesale central bank digital currency (CBDC). Initial participants include major banks such as DBS, OCBC, Standard Chartered, and UOB.
The move represents Singapore’s latest effort to position itself as a leading hub for digital asset innovation while maintaining regulatory oversight. With Project Guardian now encompassing over 40 financial institutions and policymakers across seven jurisdictions, these new initiatives signal MAS’s commitment to building a scalable, globally connected tokenized asset ecosystem.
