The Monetary Authority of Singapore (MAS) will introduce new measures aimed at boosting tokenization in financial services.

The regulator stated it will establish commercial networks to improve the liquidity of tokenized assets, enhancing the ecosystem of market infrastructures and developing frameworks for industry-wide implementation of tokenized assets.

“MAS has encountered notable interest in asset tokenization recently, especially in areas such as fixed income, FX, and asset management. We are motivated by the active engagement from financial institutions and fellow policymakers to collaboratively create industry standards and risk management frameworks for the effective deployment of tokenized capital markets products, and to expand tokenized markets on a broader basis,” said Leong Sing Chiong, deputy managing director (Markets and Development) of MAS.

In addition, Project Guardian, MAS's crypto industry group, released two frameworks concerning the acceptance and implementation of tokenized assets by financial institutions, which includes participants from 40 financial institutions, industry associations, and international policymakers across seven regions.

The Guardian Fixed Income Framework will guide tokenization in debt capital markets, aiming to enhance capabilities and catalyze the adoption of tokenized fixed income solutions.

Meanwhile, the Guardian Funds Framework will offer best practice recommendations for tokenized funds, including elements for developing tokenized investment vehicles that encompass various assets.