The project will be piloted by the financial industry to investigate use cases of asset tokenization.
On May 31, the Monetary Authority of Singapore (MAS) rolled out its joint venture dubbed Project Guardian to investigate use cases of asset tokenization and economic potential.
The initiative will delve into DeFi apps in wholesale funding markets. To do so, the pilot will focus on constructing a liquidity pool that consists of tokenized deposits and bonds.
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Project Guardian was initiated during the Asia Tech and Singapore Summit by the Deputy Prime Minister and Coordinating Minister for Economic Policies, Heng Swee Keat, and led by SGX-Temasek digital asset venture Marketnode, an American multinational investment bank JP Morgan, and DBS Bank Ltd.
With Project Guardian, the digital asset venture seeks to point out and solve real-world market challenges, including excessive intermediation costs, fragmented liquidity venues, and transaction inefficiencies.
CEO of Marketnode Martin Pickrodt commented on the partnership and stated:
“Marketnode is pleased to collaborate with MAS and industry partners, DBS and J.P. Morgan, on this innovative and meaningful initiative out of Singapore. Having spearheaded various digital capital market initiatives over the last three years, we are excited to jointly develop a common market infrastructure which leverages the many benefits that institutional-grade DeFi protocols and tokenization technologies can bring.”
DBS Group Head of Strategy and Planning Han Kwee Juan also added that this collaboration is a perfect solution to investigate the usage of decentralized finance in improving the scalability and efficiency in trading, settlement, and clearing while additionally mitigating threats to financial integrity. He continued:
"Developed on public blockchain, this pilot is also pivotal as it furthers efforts to innovate, advance and scale institutional financial applications on blockchain and their interoperability across different blockchain networks with the long-established rails of the existing financial markets.
Juan implies that this early DeFi investigation ensures Singapore's competitiveness across numerous financial centers.
Earlier this month, JPMorgan announced that it would use its own blockchain for collateral settlements and eventually allow its traders to submit a number of assets as collateral that may be utilized beyond the usual market hours.
Also, back in February, Singapore’s DBS Bank stated that it would be looking to "make the access to digital assets more convenient" by enabling fast transactions and quick deposits.
