MAS Partners with DBS, JPMorgan to Explore Uses of Asset Tokenization and DeFi

The Monetary Authority of Singapore (MAS) has partnered with major banks and financial services companies to launch Project Guardian, exploring the uses of asset tokenization and decentralized finance (defi). DBS Bank and JPMorgan will pilot the first project.

"The first industry pilot under Project Guardian will explore potential defi applications in wholesale funding markets," the MAS detailed, adding: "The pilot, led by DBS Bank Ltd., JP Morgan, and Marketnode, involves the creation of a permissioned liquidity pool comprising tokenized bonds and deposits."

"The pilot aims to carry out secured borrowing and lending on a public blockchain-based network through execution of smart contracts," the MAS continued.

Sopnendu Mohanty, chief fintech officer at the central bank, explained that the MAS is "closely monitoring innovations and growth in the digital asset ecosystem and working through the potential opportunities and risks that come with new technologies — to consumers, investors, and the financial system at large."

He noted: "The learnings from Project Guardian will serve to inform policy markets on the regulatory guardrails that are needed to harness the benefits of defi while mitigating its risks."

Han Kwee Juan, head of group planning and strategy at DBS, Southeast Asia's largest bank, commented: "DBS is pleased to lead the charge to explore potential digital assets and use of defi concepts that will enhance efficiency and scalability in trading, clearing, and settlement; while managing risks to financial stability and integrity."

​Source: Bitcoin.com