Central Bank of Singapore explores DeFi, tokenization potential

Singapore’s central bank and the Monetary Authority of Singapore (MAS) are tapping into the potential of decentralized finance (DeFi) and blockchain.

The parties are tapping JP Morgan to launch a pilot project on the matter as crypto giants began to move their business to Dubai.

It will be under an umbrella initiative called “Project Guardian”, which aims to explore the benefits of asset tokenization. Deputy Prime Minister and Coordinating Minister for Economic Policy Heng Swee Keat unveiled the project last May 31, 2022, during the Asia Tech x Singapore Summit.

JPMorgan Chase is tapped to unlock the true potential of DeFi in wholesale funding markets. Experts share that MAS started Project Guardian because of tight regulations that are driving crypto businesses away from Singapore.

Han Kwee Juan, Head of Planning and Strategy at DBS Bank, shares, “We believe these early explorations of DeFi solutions will ensure Singapore’s competitiveness and relevance as a state-of-the-art financial center.”