Today the Monetary Authority of Singapore (MAS) unveiled its latest public blockchain tokenization trials. In the latest iteration of Project Guardian in conjunction with the BIS, it outlined a framework to address how to approach public blockchain – or open interoperable networks – and the perceived risks. The latest tests involve 11 institutions including five systemically important banks Standard Chartered, HSBC, Citi, UBS and JP Morgan.
Japanese tokenized government bonds have been used in previous and current iterations of Project Guardian and hence the Japan Financial Services Agency (JFSA) has joined the project.
The driver behind the project is the proliferation of permissioned digital asset platforms, particularly for bonds, which each represents a silo and potential fragmentation. There’s a need for interoperability with existing systems and each network. In contrast, the permissionless Ethereum blockchain enables an immediate audience of millions. Given these are networks, size matters to achieve network effects.
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