SBI Digital Markets is deepening its involvement in the Monetary Authority of Singapore’s Project Guardian, which explores tokenisation of financial assets.
The company is working with financial institutions to create a framework for distributing tokenised securities in primary and secondary markets.
It connects regulated digital asset exchanges across jurisdictions using a blockchain-agnostic platform.
In the fixed income pilot, SBI aims to boost global liquidity by issuing tokenised asset-backed securities in both traditional and digital formats.
This framework, set to launch within two months, will first offer a structured note backed by luxury wines, followed by intellectual property and commodities.
In the asset and wealth management pilot, SBI builds on its previous work with UBS Asset Management.
This phase tests the commercial use of a tokenised UBS money market fund under a Variable Capital Company (VCC) structure.
The project uses a digital transfer agent smart contract and Chainlink’s Cross-Chain Interoperability Protocol (CCIP) for cross-chain communication, enhancing efficiency and transparency while cutting costs.
SBI is also working on launching a tokenised bond, following last year’s live repurchase transaction with a natively-issued digital bond on a public blockchain.
Winston Quek, Chief Executive Officer of SBI Digital Markets, stated,
“From origination, tokenisation, distribution, digital custody, listing on digital asset exchanges and building secondary trading – we have put in place workflows for efficient cross-border distribution networks whilst allowing for dual issuances in traditional and tokenised formats.
We have adopted open and interoperable architecture in both operational structuring and tech engineering to allow institutional investors at various stages of digital transformation to join our journey and unlock efficiencies through blockchain technology.”
Featured image credit: Edited from Freepik
