The Deutsche Bundesbank has become a member of Project Guardian, a global initiative led by the Monetary Authority of Singapore (MAS) that explores the use of asset tokenisation in financial markets.
As the German member of the Eurosystem and the monetary authority for Germany from 1957 to 1998, the Bundesbank brings its expertise to the project.
Launched in May 2022, Project Guardian brings together policymakers and key financial industry players to improve market liquidity and efficiency through the innovative use of technology.
The Bundesbank will participate in various pilot projects testing specific use cases for asset tokenisation, exploring its feasibility and its potential benefits for capital markets, and examining how it can leverage network effects.
As a member of the Project Guardian policymaker group, the Bundesbank will contribute to cross-border collaboration by working with other central banks and institutions to develop common standards and improve interoperability for this emerging technology.
The bank will also play a role in the Asset & Wealth Management workstream, testing an interoperable blockchain platform for tokenised and digital funds.
Project Guardian has three main goals: creating industry frameworks for asset tokenisation, establishing policy guidelines and standards, and developing a robust and sustainable digital asset ecosystem with real-world applications.
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.”
Burkhard Balz, Bundesbank’s Executive Board member, said,
“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.
The Bundesbank is very pleased to be cooperating with a partner that is as competent as MAS.”
Featured image credit: Edited from Wikipedia
