MAS Proposes Open and Interoperable Framework for Digital Asset Networks

blockchain.news:

The Monetary Authority of Singapore (MAS) has unveiled a comprehensive report introducing a framework for the design of open and interoperable networks for digital assets. The report, titled «Enabling Open & Interoperable Networks,» is a collaborative effort between MAS and subject matter experts from the Bank for International Settlements' Committee on Payments and Market Infrastructure (CPMI), with contributions from various financial institutions [1].

In addition to outlining the framework, the report explores the application of the CPMI-IOSCO principles for financial market infrastructures to evolving models of digital asset networks. It draws insights from industry pilots conducted under Project Guardian, an initiative by MAS in partnership with the financial industry. The objective of Project Guardian is to assess the feasibility of asset tokenization and Decentralized Finance, ensuring that emerging digital asset networks adhere to international standards that promote safety and efficiency within the financial market infrastructure.

As part of its ongoing efforts, MAS has expanded Project Guardian to encompass a broader range of financial asset classes. To support this expansion, MAS has established the Project Guardian Industry Group, consisting of 11 prominent financial institutions [2]. These institutions will lead industry pilots in asset and wealth management, fixed income, and foreign exchange.

Within the realm of asset and wealth management, several pilots are currently underway. HSBC, Marketnode, and UOB have successfully completed a technical pilot involving the issuance and distribution of a digitally native structured product. This pilot showcased the potential benefits of lower costs, reduced