blockchainreporter
  • News
    • Altcoins
    • Bitcoin
    • Blockchain
    • Ethereum
    • Adoption
    • NFT
    • DeFi
    • Metaverse
  • Education
  • Glossary
  • Advertise
No Result
View All Result
Bet Now
blockchainreporter
  • News
    • Altcoins
    • Bitcoin
    • Blockchain
    • Ethereum
    • Adoption
    • NFT
    • DeFi
    • Metaverse
  • Education
  • Glossary
  • Advertise
No Result
View All Result
blockchainreporter
Bet Now
No Result
View All Result
Bitcoin
BTC
1d:
7d:
Ethereum
ETH
1d:
7d:
Polkadot
DOT
1d:
7d:
Solana
SOL
1d:
7d:
Ripple
XRP
1d:
7d:
Shiba INU
SHIB
1d:
7d:

Monetary Authority of Singapore Launches First Pilot of Digital Asset Industry and DeFi

Mushu Butt by Mushu Butt
November 2, 2022 - 2:22 pm
in defi news
0
Singapore
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Today, the Monetary Authority of Singapore (MAS) made the announcement that the first industry pilot under MAS’ Project Guardian, which evaluates possible uses of decentralized finance (DeFi) in wholesale funding markets, has successfully performed its first live trades.

More industry pilots have been started to test the implementation of asset tokenization and DeFi across a wider variety of use cases in the financial industry. This testing is being done in an effort to accelerate the adoption of these technologies.

DBS Bank, JP Morgan, and SBI Digital Asset Holdings participated in the first industry pilot by conducting foreign exchange and government bond transactions against liquidity pools that were comprised of tokenized Singapore Government Securities Bonds, Japanese Government Bonds, Japanese Yen (JPY), and Singapore Dollars (SGD).

Harnessing The Benefits Of DeFi

A successful live cross-currency transaction comprising tokenized deposits of Japanese yen and Singapore dollars was successfully undertaken. In addition, a simulated exercise that involved the purchase and sale of tokenized government bonds was carried out.

Without the need for third-party financial intermediaries, DeFi paves the way for entities to conduct financial transactions directly with one another through the use of smart contracts. The cross-currency transactions of tokenized assets that were successfully carried out during the first pilot show that these transactions can be exchanged, cleared, and settled quickly among direct participants.

This means that costs associated with the execution of trades through clearing and settlement facilitators and the administration of bilateral counterparty trading relationships, which are required in today’s over-the-counter (OTC) markets, are no longer incurred.

Oliver Wyman Forum, in collaboration with DBS Bank, JP Morgan, and SBI Digital Asset Holdings, has published a whitepaper that provides a summary of the key takeaways from the initial pilot. These takeaways include the advantages of digital asset interoperability and the increased efficiency of transactions that institutional DeFi protocols may bring to financial markets.

Engaging The Financial Industry For Collaboration

MAS has been working with the financial industry to identify critical areas for partnership ever since the introduction of Project Guardian in May of 2022. These include conducting industry pilots with financial institutions and FinTechs in Singapore and other countries to identify good asset tokenization use cases for financial services.

The industry is able to find possibilities to generate economic value and disclose potential risk management issues through the use of such pilots. Studying the regulatory and risk management implications of transactions involving tokenized assets, such as the regulatory treatment of tokenized liabilities and suitable governance for institutional DeFi structures, is another part of this process.

This study is being done to improve supervision and accountability. They are also building technology standards to allow interoperability throughout the digital asset ecosystems. This interoperability has the ability to enable cross-currency transactions of tokenized assets on a global scale.

This first requires the establishment of a common identity and access framework that will be supported by trust anchors. Trust anchors are regulated financial companies that examine, verify, and provide verifiable credentials to businesses that seek to participate in the DeFi protocols.

Sopnendu Mohanty, Chief FinTech Officer, MAS, said, “The live pilots led by industry participants demonstrate that with the appropriate guardrails in place, digital assets and decentralized finance have the potential to transform capital markets. This is a big step towards enabling more efficient and integrated global financial networks.”

The MAS has gained a more in-depth understanding of the ecosystem surrounding digital assets as a result of Project Guardian, which has helped the creation of Singapore’s digital asset strategy. The MAS is excited about the prospect of collaborating with additional institutions to enhance global learning on policies, norms, and industry standards for the regulation of digital assets and responsible innovation.

Launching Two New Industry Pilots

As a result of the industry interactions, MAS is launching two new industry pilots: trade finance (TradeFi) and Wealth Management). Standard Chartered Bank is spearheading a project for TradeFi that is looking into the possibility of issuing tokens that are tied to trade finance assets.

The goal of the project is to digitize the market for trade distribution by converting trade assets into transferable instruments that are more open to investors and feature increased levels of transparency. When it comes to wealth management, HSBC and UOB are collaborating with Marketnode to facilitate the native digital issuance of wealth management products. This would improve both the effectiveness of the issuance process and the investors’ access to it.

The MAS has stated that it is open to receiving more proposals from the industry that cover the primary focus areas of Project Guardian. These focus areas include open and interoperable networks, trust anchors, asset tokenization, and institutional-grade DeFi protocols. The Monetary Authority of Singapore extends an invitation to any parties interested in doing live testing to submit proposals to the FinTech Regulatory Sandbox.

Tags: CryptoCryptocurrencyDeFiEcosystemSingapore
ShareTweet
Mushu Butt

Mushu Butt

Mushu Butt is an experienced freelance content writer. His focus is primarily on blockchain technology and cryptocurrency. One might even refer to him as a "blockchain enthusiast." He has been following advancements in the crypto and blockchain area for several years, researching and writing his insights in the media.In addition to being a skilled content writer, Mushu is also knowledgeable in SEO and digital marketing. He aspires to succeed as a content creator in the digital realm, dealing with customers in the finance and tech industries to generate traffic through engaging taglines and content. Mushu enjoys traveling, reading, and playing cricket when he is not writing. He now works as a news and article writer for Blockchainreporter.

Recommended For You

Attacker Exploits CoW Swap DEX and Drains over $180K from its Contract Address

by Shayan Chowdhury
February 7, 2023 - 10:00 am
0
CoW Swap

Recently, security firm PeckShield alerted that an exploiter drained over $180K worth of assets from CoW Swap DEX and transferred them to Tornado Cash. 

Read more

Factor DAO Announces a Collaboration and Integration with Plutus DAO

by Umair Younas
February 6, 2023 - 12:09 pm
0
factor dao plutus dao

Factor DAO mentioned that they are integrating Plutus DAO and other such assets to let protocols optimize the products offered by them.

Read more

Crypto Theft: In 2022, Hackers with Ties to North Korea Stole $1.7 Billion

by Kester Odero
February 2, 2023 - 4:23 pm
0
hack

2022 was another bad year in terms of crypto hacks. According to data from Chainalysis, 2022 saw $1.7 billion worth of crypto stolen by the Lazarus.

Read more

Concordium and Frontier Wallet Partner to Boost Exposure for Concordium Blockchain

by Umair Younas
February 2, 2023 - 1:24 pm
0
frontier concordium

The Concordium blockchain has announced it plans to allow its users to stake and delegate the system's native currency, CCD.

Read more

Decentralized Exchange Dexalot Introduces First Hybrid DeFi Subnet on Avalanche

by Mushu Butt
February 1, 2023 - 3:00 pm
0
dexalot

Decentralized exchange Dexalot has launched its first hybrid DeFi subnet on Avalanche, marking a new milestone for decentralized trading protocols.

Read more
Next Post
Deribit

Deribit Crypto Exchange Sees $28M Exploit, Halts Withdrawals

PARTNERS LIST

PRESS RELEASE

Coinbase-Backed DeSo Unveils MegaSwap, a “Stripe for Crypto” product, with Over $5 Million in Volume

by chainwire
February 7, 2023 - 3:02 pm
0

Los Angeles, United States, 7th February, 2023, ChainwireDeSo is excited to announce the launch of MegaSwap – a revolutionary, cross-chain...

The Future of DAOs Takes Center Stage in Tel Aviv

by chainwire
February 6, 2023 - 8:00 am
0

Tel Aviv, Israel, 6th February, 2023, ChainwireThe DAOVOZ collective is excited to announce the inaugural DAOVOZ Tel Aviv event on...

Game Space Powers Web3 Gaming With the Launch of Player One Tournament, Aligns Partnership with Splinterlands, Gods Unchained and Big Time

by Max Clark
February 3, 2023 - 12:00 pm
0

For Player One Tournament, Game Space will continue to cooperate with more public chains, various gaming guilds, Web3 Infra, Web3...

Metacade presale investment rockets past $5 million as GameFi investors hurry to buy remaining MCADE tokens

by chainwire
February 2, 2023 - 3:38 pm
0

London, United Kingdom, 2nd February, 2023, ChainwireThe Metacade presale is selling out fast with stage 3 coming to a close...

BlockchainReporter is a trusted name in the cryptocurrency and blockchain technology news space, keeping its readers abreast of the latest and most significant trends in the industry.

Here at BlockchainReporter, our team of global writers is dedicated to providing price analysis on leading cryptocurrencies and covering the latest developments pertaining to bitcoin news, altcoins news, blockchain news, NFT news and cryptocurrency adoption news from around the world.

News

  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • Adoption
  • NFT
  • DeFi
  • Metaverse

Info

  • Education
  • Glossary
  • Market
  • Press Release

Company

  • About Us
  • Terms & Conditions
  • Advertise
  • Sitemap
  • Contact

@2022 – Blockchainreporter.net. All Right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Bitcoin
    • Blockchain
    • Ethereum
    • Adoption
    • NFT
    • DeFi
    • Metaverse
  • Education
  • Glossary
  • Advertise

@2023 - Blockchainreporter.net. All Right Reserved.