Key Takeaways
- • The Monetary Authority of Singapore (MAS) has launched five new pilot programmes under Project Guardian, expanding its blockchain-based asset tokenisation initiative to test scalable solutions across capital markets infrastructure including listing, distribution, trading, settlement, and asset servicing.
- • Five major financial institutions are leading distinct use cases: Citi, T Rowe Price, and Fidelity International are testing bilateral digital asset pricing and execution with real-time post-trade reporting; BNY Mellon and OCBC Bank are developing cross-border foreign exchange payment products; Ant Group is piloting treasury management with real-time multi-currency clearing; and Franklin Templeton is issuing a tokenised money market fund through a variable capital company (VCC) structure.
- • Project Guardian represents MAS's effort to establish a regulated ecosystem where digital assets and tokenisation can operate while maintaining financial system stability, with the initiative now encompassing trials across multiple currencies and financial products over a two-year period involving 24 financial institutions.
- • The pilots address operational inefficiencies in institutional asset trading by simplifying investment processes and potentially enhancing liquidity through blockchain infrastructure, moving from operationally intensive, multi-step trade placements to streamlined digital settlement workflows.
Summary
The Monetary Authority of Singapore announced five new industry pilot programmes under Project Guardian on November 15, 2023, expanding its initiative to test scalable asset tokenisation use cases across institutional capital markets. The initiative, led by MAS in collaboration with the financial services industry, aims to develop blockchain-based solutions that integrate the full capital markets value chain—from listing and distribution through trading, settlement, and asset servicing.
The five pilots represent distinct applications of tokenisation technology across major financial institutions. Citi, T Rowe Price Associates, and Fidelity International are collaborating on a pilot that uses blockchain to price and execute bilateral digital asset trades with improved efficiency, including real-time post-trade reporting capabilities. This addresses a core institutional need for transparent, streamlined execution workflows. BNY Mellon and OCBC Bank are simultaneously testing a cross-border foreign exchange payment product designed to enable secure payments across networks of different technological origins, directly tackling interoperability challenges in international transaction settlement.
Ant Group is testing a treasury management solution focused on real-time multi-currency clearing and settlement through its Singapore-based global treasury centre, while Franklin Templeton is issuing a tokenised money market fund using a variable capital company (VCC) structure on digital asset networks. The VCC framework provides flexibility in fund share issuance and redemption, representing a significant structural innovation for tokenised asset offerings. Citi's head of foreign exchange sales, Sam Hewson, highlighted the strategic imperative: "We are taking steps towards building foundational capabilities to offer liquidity, pricing and risk management to our global clients wherever they choose to trade – be it on traditional rails or on blockchain."
Project Guardian reflects MAS's broader vision for a regulated digital asset ecosystem that maintains financial stability and integrity while enabling innovation. Over two years, MAS has worked with 24 financial institutions across multiple currencies and asset classes to pilot promising tokenisation use cases. The initiative addresses fundamental operational pain points in institutional markets, where current processes require multiple systems, steps, and teams. By simplifying these workflows through tokenisation and smart contracts, the pilots aim to demonstrate enhanced client outcomes and improved liquidity conditions for institutional investors.
The five pilots represent distinct applications of tokenisation technology across major financial institutions. Citi, T Rowe Price Associates, and Fidelity International are collaborating on a pilot that uses blockchain to price and execute bilateral digital asset trades with improved efficiency, including real-time post-trade reporting capabilities. This addresses a core institutional need for transparent, streamlined execution workflows. BNY Mellon and OCBC Bank are simultaneously testing a cross-border foreign exchange payment product designed to enable secure payments across networks of different technological origins, directly tackling interoperability challenges in international transaction settlement.
Ant Group is testing a treasury management solution focused on real-time multi-currency clearing and settlement through its Singapore-based global treasury centre, while Franklin Templeton is issuing a tokenised money market fund using a variable capital company (VCC) structure on digital asset networks. The VCC framework provides flexibility in fund share issuance and redemption, representing a significant structural innovation for tokenised asset offerings. Citi's head of foreign exchange sales, Sam Hewson, highlighted the strategic imperative: "We are taking steps towards building foundational capabilities to offer liquidity, pricing and risk management to our global clients wherever they choose to trade – be it on traditional rails or on blockchain."
Project Guardian reflects MAS's broader vision for a regulated digital asset ecosystem that maintains financial stability and integrity while enabling innovation. Over two years, MAS has worked with 24 financial institutions across multiple currencies and asset classes to pilot promising tokenisation use cases. The initiative addresses fundamental operational pain points in institutional markets, where current processes require multiple systems, steps, and teams. By simplifying these workflows through tokenisation and smart contracts, the pilots aim to demonstrate enhanced client outcomes and improved liquidity conditions for institutional investors.
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