First Pilot for Digital Asset and DeFi Goes Live: MAS

First Pilot for Digital Asset and DeFi Goes Live: MAS
  • Singapore live-tests digital assets trading under Project Guardian.
  • Buying and selling of tokenized Singapore Government Securities were done.
  • The success of the pilot led MAS to announce that it will launch two further industrial pilots.

With a live test of the trading of digital assets across liquidity pools and platforms, Singapore has entered the decentralized finance (DeFi) realm.

As part of the first industry trial for Project Guardian, the Monetary Authority of Singapore (MAS) used tokenized deposits in a live transaction on Wednesday.

Tokenized Singapore Government Securities, Singapore Dollars, Japanese Government Bonds, and Japanese Yen were bought and sold. It was carried out by lenders DBS Bank and JP Morgan. SBI Digital Asset Holdings, a unit of Japanese financial services company SBI was also included.

In the MAS pilot, the purchasing and selling of tokenized government bonds were also simulated.

In contrast to conventional trading in over-the-counter marketplaces, the transactions carried out on Project Guardian’s public blockchain, employed smart contracts to eliminate financial middlemen.

The pilot establishes the groundwork for developing international institutional liquidity pools that enable speedier trading. Additionally, it enables better transparency, higher efficiency, fewer settlement risks, and economies of scale. This is according to Mr. Han Kwee Juan, group head of strategy and planning at DBS.

Especially when trading occurs in a “permissioned market” or a market where anonymous wallets are validated through `Know Your Customer` procedures, he continued, smart contracts will change how trade is conducted in a trustworthy manner.

Aiming to establish open, interoperable networks that allow for the trading of digital assets across platforms and liquidity pools, Project Guardian was introduced in May by MAS.

Due to the initial pilot’s success, MAS said it is starting two further industrial pilots.

First, an attempt to investigate the issue of tokens connected to trade finance assets is being led by Standard Chartered Bank. The trade distribution market will be digitalized as a result of the initiative. Converting trade assets into transferable instruments, which are more transparent and open to investors, would be made feasible.


And second, by enabling native digital issuance of wealth management products, HSBC and UOB are collaborating with Marketnode. This will improve the effectiveness and accessibility of the issuance process for investors.

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