New frameworks set to advance asset tokenisation in Singapore

MAS is launching the Global Layer One initiative, supported by major financial players like Euroclear and HSBC, and introducing guidance frameworks for fixed income and fund tokenisation.

Keppel DC REIT will fully own two major data centres in Singapore following a $1.03 billion divestment deal.

The Monetary Authority of Singapore (MAS) has announced a major initiative to drive asset tokenisation to a commercial scale. At the MAS Layer One Summit, Deputy Managing Director Leong Sing Chiong highlighted recent achievements in tokenisation trials under Project Guardian, where over 40 financial institutions across seven jurisdictions tested tokenisation in foreign exchange and funds. However, he noted that while promising, these trials have yet to reach industry-wide adoption due to limitations in infrastructure and liquidity.

To address these challenges, MAS introduced new frameworks and plans, including the Global Layer One initiative, which is set to expand next year with the support of major financial players such as Euroclear and HSBC. The MAS also released two guidance frameworks: the Guardian Fixed Income Framework for debt markets and the Guardian Funds Framework for fund tokenisation. Both are designed to standardise processes and encourage best practices in tokenisation.

MAS’s efforts also include launching the SGD Testnet, a tokenised payments and securities settlements platform that will feature a Singapore dollar wholesale CBDC. Building on the work of Project Orchid, the testnet will support purpose-bound money, aiming to enable programmable financial transactions. As tokenisation develops, Singapore is positioning itself as a leader in digital asset integration.