The city-state aims to establish itself as the center of decentralized finance
Following the departure of several significant crypto firms, Singapore has initiated a project to explore possible use cases for asset tokenization.
The pilot project is led by DBS Bank Ltd., JPMorgan Chase & Co.
Asset tokenization and decentralized finance (DeFi) applications will be tested as part of Project Guardian, a collaboration between the Singapore Monetary Authority and the financial industry.
The MAS was one of the first regulators to consider the use of blockchain technology, and Singapore has had a licensing structure in place for several years. The slow speed of approvals, on the other hand, irritated applicants, and the bitcoin advertising restriction caught the sector off guard.
“We intend to expand our understanding of this fast-shifting digital asset environment by hands-on experimentation with the financial industry and the wider ecosystem,” said MAS CFO Mohanty.