S&P Global Ratings Partners with Singapore MAS in Project Guardian
S&P Global Ratings, an independent credit ratings provider, has joined hands with the Monetary Authority of Singapore (MAS) in their initiative, Project Guardian, aimed at exploring asset tokenization. The company made the official announcement on Thursday, confirming its role in contributing to risk assessment within the fixed income workstream. Specifically, S&P will develop analytic frameworks, assessments, and benchmarks for digital assets and tokenized markets.
Andrew O’Neill, Digital Assets Analytical Lead at S&P Global Ratings, emphasized the transformative potential of digitalization in capital markets, particularly highlighting recent innovations in tokenized bonds. Chuck Mounts, Chief DeFi Officer, underscored S&P’s robust risk assessment capabilities, emphasizing their relevance to both traditional finance (TradFi) and decentralized finance (DeFi) clients.
This development follows the recent inclusion of Deutsche Bank in Project Guardian, where the multinational investment bank aims to explore an open architecture and interoperable blockchain platform for servicing tokenized assets.
Project Guardian seeks to explore various applications of asset tokenization, including listing, distribution, trading, settlement, and asset servicing. The initiative includes participation from global financial heavyweights such as BNY Mellon, DBS, JP Morgan, and MUFG, alongside international policymakers.
MAS, on Thursday, announced an expansion of its efforts to promote asset tokenization within financial services. The central bank of Singapore highlighted its collaboration with 24 financial institutions over the past two years under Project Guardian, noting the successful completion of the initial phase of the Global Layer One (GL1) initiative. This extension of Project Guardian involves 17 financial institutions and aims to facilitate seamless cross-border transactions and trading across liquidity pools.
“The GL1 initiative marks a crucial advancement in realizing the potential of asset tokenization and achieving efficiencies in capital markets,” commented Leong Sing Chiong, Deputy Managing Director of MAS.
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