Singapore, 4 November 2024… The Monetary Authority of Singapore (MAS) today announced plans to advance tokenisation in financial services. These include:
Deepening liquidity of tokenised assets through formation of commercial networks: By connecting a broader set of participants’ products and services across multiple currencies and assets, greater improvements in capital raising, secondary trading, asset servicing and settlement of tokenised assets may be realised. This will deepen liquidity across primary and secondary markets for tokenised asset transactions.
Developing ecosystem of market infrastructures to facilitate seamless cross border transactions: MAS launched the Global Layer One (GL1) initiative in 2023 to foster the development of foundational digital infrastructures, upon which commercial networks could be deployed. Since the launch, a core group of global banks, BNY, Citi, J.P. Morgan, MUFG and Societe Generale-FORGE have been leading efforts to define the business, governance, risk, legal and technology requirements of the GL1 Platform.
Industry Frameworks for Implementation of Tokenisation: ①Guardian Fixed Income Framework (GFIF) – GFIF integrates the International Capital Market Association’s Bond Data Taxonomy, Capital Markets and Technology Association’s Token Standards, and the Global Financial Markets Association’s Design Principles for Tokenised Securities. ②Guardian Funds Framework (GFF) – GFF provides a set of recommendations for industry best practices for tokenised funds. This includes the Guardian Composable Token Taxonomy to facilitate development of tokenised investment vehicles comprising multiple assets, simplifying the process of incorporating new tokenised funds, and help achieve efficiencies in fund settlement.
Access to Common Settlement Facility for Tokenised Assets: To promote confidence in the settlement of tokenised assets in financial markets, regulated and credible forms of tokenised money are needed as common settlement assets, thereby reducing settlement risk and market fragmentation. MAS is therefore facilitating financial institutions’ access to common settlement assets including S$ wholesale CBDC for market testing purposes.