Just-In: Singapore To Venture Into DeFi With Major Banks, Here’s How

Singapore’s Deputy Prime Minister Heng Swee Keat on Tuesday announced “Project Guardian” to explore the tokenization of financial assets and use cases of DeFi. The Monetary Authority of Singapore will collaborate with top banks, digital asset companies, and digital infrastructure firms under the project. The participants in a pilot will test the feasibility, financial stability and integrity risks, and regulatory framework for the digital asset initiative.

MAS Works With Banks and Digital Asset Firms on DeFi Pilot

During the Asia Tech X Singapore 2022 Summit on May 31, Heng Swee Keat admits the potential of crypto to transform the future of finance, despite underlying risks. Moreover, he believes retail investors should not invest in cryptocurrencies, even if the country adopts rules to address key risks.

The Deputy Prime Minister tasked the MAS to work with the financial industry and leading digital assets companies including DBS Bank, JPMorgan, and Singapore Exchange’s digital asset venture Marketnode on the “Project Guardian.”

MAS aims to develop and pilot use cases in areas including building open, interoperable networks, establishing trust anchors, asset tokenization, and institutional-grade DeFi applications. Moreover, the project involves creating a permissioned liquidity pool, and secured borrowing and lending on a public blockchain.

Sopnendu Mohanty, chief fintech officer of the MAS, said: