THE German Federal Bank became a member of Project Guardiana global initiative led by the Monetary Authority of Singapore (MAS) that explores the use of asset tokenization in financial markets.
As a German member of the Eurosystem and Germany’s monetary authority from 1957 to 1998, the Bundesbank brings its expertise to the project.
Launched in May 2022, Project Guardian brings together policymakers and key players in the financial sector to improve market liquidity and efficiency through the innovative use of technology.
The Bundesbank will participate in various pilot projects testing specific use cases for asset tokenization, exploring its feasibility and potential benefits for capital markets, and examining how it can leverage network effects.
As a member of the Project Guardian policymaker group, the Bundesbank will contribute to cross-border collaboration by working with other central banks and institutions to develop common standards and improve the interoperability of this emerging technology.
The bank will also play a role in the Asset & Wealth Management workflow, testing an interoperable blockchain platform for tokenized and digital funds.
The Guardian Project has three main goals: creating industry frameworks for asset tokenization, establishing policy guidelines and standards, and developing a robust and sustainable digital asset ecosystem with real-world applications.
Leong Sing Chiong, deputy general manager (markets and development) of MAS, said:
“We are delighted to welcome Deutsche Bundesbank to the Guardian project.
The Bundesbank’s expertise will be invaluable as we work together to improve the liquidity and efficiency of financial markets through asset tokenization.
Burkhard Balz, member of the board of directors of the Bundesbank, said:
“MAS works intensively on innovative topics that we also cover in Europe, for example on how innovative technologies and concepts, such as distributed ledger technology (DLT) or blockchain, can be used meaningfully in the sector financial.
The Bundesbank is very pleased to work with such a competent partner as MAS.”
This article first appeared on Fintech Singapore News.
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