The Deutsche Bundesbank has become a member of Project Guardian, a collaborative initiative organised by the Monetary Authority of Singapore (MAS). Initiated by MAS in May 2022, Project Guardian is a global collaboration between policymakers and key financial industry players aimed at enhancing liquidity and efficiency of financial markets through asset tokenisation. MAS is working intensively on innovative topics that we are also dealing with in Europe, for example regarding how innovative technologies and concepts, such as distributed ledger technology (DLT) or blockchain, can be put to meaningful use in the financial sector, said Bundesbank Executive Board member Burkhard Balz. The Bundesbank is very pleased to be cooperating with a partner that is as competent as MAS.”

Various pilot projects have been launched to test use cases for the tokenisation of assets, leverage network effects, and identify the potential for capital markets. The Bundesbank is a member of the Project Guardian policymaker group, which seeks to deepen cross-border collaboration, advance discussion on standardisation and interoperability of digital assets, and sustainably grow the digital asset ecosystem. As part of the Asset & Wealth Management workstream, the Bundesbank will test an interoperable blockchain platform for tokenised and digital funds.

Project Guardian is essentially seeking to achieve three objectives: establishing industry frameworks for the tokenisation of assets; establishing policy guidelines and standards (including the definition of a governance model setting technical standards for digital assets); and developing a sound and sustainable ecosystem for digital assets with commercial use cases that align with policy considerations and frameworks.

Mr Leong Sing Chiong, Deputy Managing Director (Markets and Development) of MAS, said, We are delighted to welcome the Deutsche Bundesbank to Project Guardian. The Bundesbank’s expertise will be invaluable as we work together to enhance liquidity and efficiency of financial markets through asset tokenisation.”