Wednesday, October 5, 2022

Singapore Announces Plans to Tokenize Financial Assets on Blockchain

Singapore, through the office of the Prime Minister, has just announced that it will tokenize financial assets on the blockchain. During the speech of the Deputy Prime Minister, Heng Swee Keat at the Asia Tech X Singapore Summit, he noted that the project dubbed “Project Guardian” will be launched to facilitate the realization of this plan.

Singapore is a country that is driven by technology, building structures, and systems that facilitate growth in the tech space, most especially blockchain technology.

This has spurred the decision of the nation to expand its innovation into the blockchain industry, digitizing its financial assets in the virtual space. 

The project is launched by the Monetary Authority of Singapore (MAZS), a regulator that has been a competent watchdog for crypto activities in Singapore.

In his speech, Heng noted that while the blockchain industry is prone to numerous criminal activities and volatility, it, however, has uncountable innovative opportunities. He added that, amidst obvious negativities of the crypto market, “let us not throw the baby out with the bath water.”

He defined tokenization in his speech, pointing out that, “Tokenization enables fractionalization of assets, which could allow for greater liquidity, better price discovery, and access to illiquid assets.”

While the crypto industry is very volatile and full of risks, the Deputy Minister of Finance further noted that “this is a highly risky area, but it also has the potential to transform the future of finance.”

Project Guardian has a similarity to a project that was launched earlier by the Bank for International Settlements (BIS) in collaboration with Singapore’s central bank, and three other central banks.

The Project Dunbar was launched to study a digital asset class, Central Bank Digital Currencies (CBDCs), how they operate and how they can be improved upon. The largest commercial bank in Singapore, DBS has also been sponsoring innovations in the crypto ecosystem. 

During a quarterly financial report that was held in February, the bank announced that it is expanding its Bitcoin (BTC) to retail investors.

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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