Japan’s SBI Digital Markets has strengthened its role in the Monetary Authority of Singapore’s (MAS) Project Guardian, unveiling new pilots aimed at promoting the use of tokenized securities in global markets.
In partnership with leading financial institutions, the SBI Group subsidiary is developing a cross-border framework for tokenized assets, connecting regulated digital asset exchanges across multiple regions to increase liquidity and reduce costs.
Through its Fixed Income pilot, SBIDM is creating an international network for tokenized asset-backed securities, covering both initial issuance and secondary trading, the company announced on Monday.
SBIDM plans to issue its first structured bond in the coming months, backed by luxury wine assets, followed by products related to intellectual property and commodities.
These securities will be available in both traditional and digital forms to attract a broad spectrum of investors, using a blockchain-agnostic infrastructure designed to support global transactions, the report said.
Meanwhile, the Asset and Wealth Management pilot with UBS Asset Management is evaluating a UBS tokenized money market fund.
Building on last year’s technical advancements within Project Guardian, the pilot integrates blockchain-powered automation to simplify fund enrollment and redemption processes.
Powered by Chainlink’s Cross-Chain Interoperability Protocol, smart contracts streamline interactions within the fund while reducing operational costs – an innovation that SBIDM describes as a “fundamental shift” in the $63 trillion mutual fund industry.
It’s all part of MAS’s broader vision to drive the adoption of institutional digital assets under Project Guardian by leveraging both public and private blockchain technology.
Public blockchains are open and permissionless networks where anyone can join, validate transactions, and view the public ledger. They are decentralized and often rely on large, distributed networks for security, as seen with Bitcoin or Ethereum.
Private blockchains, on the other hand, are closed, permissioned networks. Access is limited to selected participants, often managed by a central entity or group.
SBIDM’s efforts join other key players in Singapore’s expansion of the tokenization sector in the region under the project, including Standard Chartered, which is exploring the issuance of digital bonds using tokens from the public blockchains Ethereum and Stellar.
HSBC, in partnership with Temasek, is also testing tokenized sustainable bonds using private blockchains in an effort to maintain financial regulatory compliance.
JP Morgan, a long-standing partner of Project Guardian, has also tested previously tokenized deposits on public and private blockchains, with the aim of increasing settlement efficiency in cross-border transactions and tokenized wallets.
Credit : cryptonews.net
