MAS scales asset tokenisation standards

It will improve standards for fixed income, FX, and asset management.

The Monetary Authority of Singapore (MAS) will partner with global industry associations and financial institutions to scale asset tokenisation standards in fixed income, foreign exchange (FX), and asset & wealth management. 

Under Project Guardian, MAS has worked with institutions such as the Global Financial Markets Association (GFMA), International Capital Market Association (ICMA), and International Swaps and Derivatives Association (ISDA) to develop standards and frameworks across key asset classes.

The fixed-income workstream will work with ICMA to develop protocols and data specifications, consider risk factors and disclosures for tokenised bonds, and partner with GFMA to create standard clauses for smart contracts in fixed-income products.

The FX workstream, partnering with ISDA and the GFMA's Global Foreign Exchange Division (GFXD), will develop FX data specifications, risk management frameworks, and FX documentation.

The asset and wealth management workstream will collaborate with global custodians and asset managers on common data models, address risk considerations for fund tokenisation, and develop a shared ledger infrastructure.

MAS also announced the completion of the first phase of the Global Layer One (GL1) initiative and plans to develop standards and principles for digital infrastructure for tokenised assets.

In the GL1 initiative, MAS is working with international policymakers and financial institutions like BNY, Citi, J.P. Morgan, MUFG Bank, and SG Forge on shared ledger infrastructure considerations.

GL1 will expand collaboration with more partners as it advances. In its next phase, GL1 will explore creating a non-profit organisation (GL1 Org) to develop unified principles, policies, and standards for a global shared ledger infrastructure.