Singapore’s New Asset Tokenization Frameworks Unveiled

• The Monetary Authority of Singapore has introduced two frameworks to support asset tokenization, aiming to bridge traditional finance with DeFi
• Project Guardian unites global banks and financial giants to create a regulatory-friendly space for tokenized assets
• Singapore’s open stance on digital assets contrasts with Europe’s cautious approach, marking it as a leader in financial innovation

The Monetary Authority of Singapore – already very active in this sector – has launched two new frameworks, one of which fully embraces the world of asset tokenization. Asset tokenization, which in that very region saw the launch of an interesting fund by UBS.

All within Project Guardian, which, in addition to the MAS, includes participation from some of the world’s largest banking and financial groups. A matter of great interest for the future of finance and also for those interested in what is happening – absolutely futuristic – unfortunately far from Italy.

Asset tokenization remains one of the most interesting sectors for the current cycle. A cycle that could aim precisely at the definitive merging of the traditional financial world with infrastructures offered by the DeFi world.

DeFi Has a New Ally in Singapore

While in Europe – and especially in Italy – there is more talk of restrictions than paths to build in the financial world, things are quite different elsewhere.

In Singapore, the local central bank has published a comprehensive plan to create a climate (including regulatory) of complete openness to the sector of tokenizing classic financial assets.

A sector where major managers like BlackRock, Franklin Templeton, and UBS have already made their debut, with UBS choosing the Singapore area specifically to formalize its commitment, with a money market fund soon to hit the markets.

What’s at stake?

It’s all explained in the report released by MAS:

The group aims to support the growth and maturation of tokenized fixed-income assets to make them more attractive to a broader range of investors, issuers, banks, and financial service companies.

The goal is clear: to be in the lead group when it comes to a new way of organizing – using DeFi infrastructures – the world of… traditional asset trading.

An issue of great interest to almost all involved, given that the advantages are diverse: from 24/7 infrastructure availability to greater cost-effectiveness, lower costs, greater ease of use, and also activity development.