S&P Global has joined the Monetary Authority of Singapore’s Project Guardian, a project aimed at exploring the potential of asset tokenization in enhancing the liquidity and efficiency of financial markets. The project, which started two years ago, involves various financial institutions and focuses on developing a digital asset ecosystem with robust standards and policy guidelines. S&P Global will contribute to the project by participating in fixed income pilot projects, aiming to provide insights on risk mitigation in tokenized transactions. The project also includes other workflows such as wealth management and foreign exchange on public blockchains, emphasizing network interoperability and the use of a modular network model.

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S&P Global Ratings is the latest institution to join the Monetary Authority of Singapore’s (MAS) massive Project Guardian. The two-year-old project examines the role asset tokenization can play in the liquidity and efficiency of financial markets. Project Guardian seeks to establish standards and policy guidelines and to develop a commercially oriented digital asset ecosystem. S&P Global will participate in fixed income pilot projects. S&P Digital Assets analytical lead Andrew O'Neill said in a statement: "We aim to bring our risk perspective and insights to this forum to support robust risk mitigation as this technology is applied in financial markets." Within the fixed income pilots, institutions are conducting foreign exchange and bond transactions against liquidity pools of tokenized bonds and currencies. They are also carrying out repurchase agreements with digital bonds an developing a listing framework for debt securities and an initial token offering for digital tokens offered on the Singapore Exchange. Related: S&P Global launches stablecoin ratings, ranks GUSD, USDP, USDC highest The project’s other workflows are wealth management and foreign exchange on public blockchains, with an eye toward network interoperability. The project is using a modular network model with four components. Project Guardian was launched by the MAS in May 2022 with JP Morgan, DBS Bank and SGX venture Marketnodes as initial participants. S&P Global became the 24th member of Project Guardian’s industry group, which is made up of predominantly large banks and asset managers. The policymakers’ group consists of government bodies from the United Kingdom, Japan, Singapore, Switzerland and France, as well as the International Monetary Fund. There is also a three-member international associations’ group. As part of Project Guardian, JPMorgan executed a live cross-border transaction in November 2022 using tokenized Singapore dollars and Japanese yen on the Polygon blockchain. It was the first major bank to carry out a decentralized finance trade on a public blockchain. One of the innovations to come out of the project is the deposit token — a form of stablecoin “issued by regulated and adequately supervised intermediaries.” The Swiss Bankers Association and JP Morgan have found advantages in the deposit token for their stability and as a way to integrate central bank digital currency into the traditional banking system. Magazine: Block by block: Blockchain technology is transforming the real estate market 

S&P Global Joins Singapore's Project Guardian for Tokenization Trials