The Future of Tokenised Assets in Financial Markets
Two key players, Euroclear and HSBC, are set to join GL1 in an effort to pave the way for wider acceptance of tokenised assets in financial institutions. GL1 will also establish a new market infrastructure working group that includes global financial market infrastructure providers.
Frameworks for Tokenisation of Fixed Income and Funds
On November 4, two frameworks were published to address the tokenisation of fixed income and funds. These frameworks aim to promote confidence in the settlement of tokenised assets within financial markets.
Facilitating Access to Common Settlement Assets
The Monetary Authority of Singapore (MAS) will facilitate access to common settlement assets for financial institutions to enhance confidence in the settlement of tokenised assets. This includes providing access to the Singdollar wholesale central bank digital currency for market testing purposes through an initial test network called SGD Testnet.
Participation in Real-Time Gross Settlement System Projects
The SGD Testnet will be available to participants of MAS’ real-time gross settlement system projects, allowing them to test the settlement of tokenised assets in a controlled environment.
Industry Collaboration for Asset Tokenisation
A collaboration of leading financial institutions including Citi, HSBC, Schroders, Standard Chartered, and UOB have formed the Guardian wholesale network industry group. This group aims to develop a network to scale their respective asset tokenisation trials.
Involvement of Policy Makers
The World Bank and Deutsche Bundesbank have joined the Project Guardian policymaker group. This group plays a crucial role in providing inputs on governance arrangements, guiding the development of GL1 infrastructures according to global standards, and advising on regulatory guardrails for tokenised asset transactions.
Insights Forum and Singapore Fintech Festival
The Insights Forum, held at the Marina Bay Sands Convention Centre, marks the beginning of a series of fintech events in Singapore. The ninth edition of the Singapore Fintech Festival will take place from November 6 to 8, showcasing the latest developments in financial technology.
Conclusion
The collaboration between key industry players, financial institutions, and policy makers demonstrates a strong commitment to advancing the tokenisation of assets in financial markets. With the establishment of frameworks, test networks, and industry groups, the future of tokenised assets looks promising.
FAQs
What is the purpose of the SGD Testnet?
The SGD Testnet allows participants of MAS’ real-time gross settlement system projects to test the settlement of tokenised assets using the Singdollar wholesale central bank digital currency in a controlled environment.
How are policy makers involved in the tokenisation of assets?
Policy makers, such as the World Bank and Deutsche Bundesbank, play a crucial role in providing guidance on governance, global standards, and regulatory frameworks for tokenised asset transactions through groups like Project Guardian.