The Monetary Authority of Singapore (MAS) has been a trailblazer in real world asset (RWA) tokenization, with the creation of Project Guardian involving over 40 high profile participants in 2022. Today it outlined its vision for how to take the next step from exploration to commercialization. The latest member additions to the Project include CMTA, the Deutsche Bundesbank, Fidelity International, Northern Trust, Swift and the World Bank.
During a speech today, MAS deputy director Mr Leong Sing Chiong outlined four requirements for commercialization, and how MAS is addressing each. They are liquidity, infrastructure, standards and settlement assets.
Before delving into the requirements, he outlined the benefits of tokenization, including the ability to exchange tokenized asset directly without intermediaries, and the capacity to exchange assets atomically via delivery versus payment, eliminating settlement risk and reducing reconciliation requirements. One of the most distinctive features of tokenization is encoding the assets with conditions and enabling other programmable functionality.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
