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SBI enhances Singapore's tokenisation project with new pilots

SBI enhances Singapore's tokenisation project with new pilots

GrafaGrafa2024/11/05 14:00
By:Isaac Francis

Japan’s SBI Digital Markets has announced its expanded involvement in the Monetary Authority of Singapore’s (MAS) Project Guardian, introducing new pilots to advance the use of tokenised securities in global markets. 

This initiative aims to create a cross-border framework for tokenised assets, connecting regulated digital asset exchanges across various regions to improve liquidity and reduce costs.

SBI Digital Markets is launching a Fixed Income pilot that will establish an international network for tokenised asset-backed securities, facilitating both initial issuance and secondary trading.

The company plans to release its first structured note backed by luxury wine assets in the coming months, followed by products linked to intellectual property and commodities. 

These securities will be offered in both traditional and digital formats to appeal to a wide range of investors, utilising a blockchain-agnostic infrastructure designed for global transactions.

Additionally, the Asset and Wealth Management pilot in collaboration with UBS Asset Management is assessing a UBS tokenised money market fund. 

This pilot builds on last year’s advancements within Project Guardian by incorporating blockchain-powered automation to streamline fund subscription and redemption processes. 

Enabled by Chainlink’s Cross-Chain Interoperability Protocol, smart contracts will simplify interactions within the fund while reducing operational costs—a change that SBI describes as a “fundamental shift” in the $63 trillion mutual fund industry.

SBI’s efforts align with MAS’s broader objective of promoting institutional digital asset adoption through Project Guardian by leveraging both public and private blockchain technologies.

Public blockchains are open networks that allow anyone to participate, while private blockchains are permissioned networks restricted to selected participants.

SBI joins other key players in Singapore's tokenisation sector, including Standard Chartered, which is exploring digital bond issuance using tokens from public blockchains like Ethereum (CRYPTO:ETH) and Stellar (CRYPTO:XLM)

HSBC is also testing tokenised sustainable bonds with Temasek using private blockchains to ensure compliance with financial regulations. 

JP Morgan has previously tested tokenised deposits on both public and private blockchains as part of its ongoing partnership with Project Guardian, focusing on enhancing settlement efficiency for cross-border transactions and tokenised portfolios.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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