The Deutsche Bundesbank, Germany’s central bank, has joined Project Guardian, a Singapore-led initiative aimed at reshaping global capital markets through asset tokenization. The Monetary Authority of Singapore (MAS) launched Project Guardian in 2022, bringing together financial heavyweights and policymakers worldwide to open new liquidity pathways and set standards for tokenized assets.
The Bundesbank, one of Europe’s key central banks, is participating in Project Guardian’s pilot projects, which are designed to foster cross-border digital assets and a cohesive global financial ecosystem. Burkhard Balz, a member of the Bundesbank’s Executive Board, highlighted the project’s alignment with Europe’s focus on distributed ledger technology (DLT) and blockchain.
He noted that MAS is working intensively on topics that are also being explored in Europe, such as the role of DLT and blockchain in modern finance. By joining Project Guardian’s policymaker group, the central bank aims to advance cross-border collaboration and drive discussions on digital asset standardization, allowing it to shape guidelines for regulatory clarity.
The German central bank plans to pilot an interoperable blockchain platform for tokenized and digital funds, which MAS sees as essential for seamless asset management across financial systems. Project Guardian’s goals include building industry frameworks and governance models for tokenized assets, prioritizing commercially viable digital assets while keeping regulatory safeguards in focus.
The Bundesbank’s involvement highlights the expanding role of central banks in developing a more interconnected, tokenized financial system. Observers see this partnership as a significant step that may influence Europe’s approach to digital finance and encourage other central banks to engage in similar initiatives.
Project Guardian has brought together major global financial institutions and industry groups to advance asset tokenization and DeFi standards. Key players include DBS Bank, JP Morgan, and SBI Digital Asset Holdings, which have executed tokenized deposits. Other participants include Deutsche Bank, the International Capital Market Association (ICMA), and regulators from the UK, Switzerland, France, and Japan.
The project aims to establish industry standards, foster cross-border collaboration, and build a sustainable digital asset ecosystem. The Bundesbank’s participation in Project Guardian is a clear indication of the growing interest in tokenization and its potential to transform the global financial landscape.
