DBS Bank, JP Morgan to take part in Singapore regulator’s asset tokenization pilot

Today, the Monetary Authority of Singapore (MAS) announced the commencement of “Project Guardian”, where it will work alongside DBS Bank, JP Morgan, and blockchain platform provider Marketnode to explore the economic potential of asset tokenization (i.e. representing assets digitally on a blockchain).

In a press release, the MAS said that tokenization “could potentially enhance the efficiency, accessibility, and affordability of financial services, increase liquidity in financial markets, and enhance economic inclusion“.

Project Guardian will focus on four blockchain use cases in particular:

• Using public blockchains to build open, interoperable networks;
• Establishing “trust anchors” i.e. regulated financial institutions that screen, verify and issue verifiable credentials to entities that wish to participate in DeFi protocols;
• Asset tokenization; and
• Institutional grade DeFi protocols

The first phase of Project Guardian will focus on using DeFi in the wholesale funding markets.

DBS and JP Morgan: Blockchain Veterans

Both DBS and JP Morgan already have a wealth of experience in researching and developing blockchain and DLT use cases.

JP Morgan is a member of the Enterprise Ethereum Alliance and the Global Blockchain Business Council. It also runs its own “center for blockchain excellence” in which it aims to “actualize enterprise-grade blockchain tools”. In 2019 JP Morgan launched its own digital currency JPM Coin.

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DBS also launched a digital exchange service earlier this year, allowing institutional investors, accredited investors, and family offices the opportunity to trade a limited selection of well-established cryptocurrencies, including Bitcoin, Ethereum, and XRP.

In October 2021 DBS announced that it was the first southeast Asian bank to join Hedera’s governing council to oversee their enterprise-grade public ledger. According to a press release at the time, DBS joined the governing council with a view to “explore further opportunities and potential use cases to leverage the vast potential of blockchain and distributed ledger technologies as it continues to reimagine the future of banking“.

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