SBI Digital Markets, a subsidiary of the SBI Group, is working on a project with the Monetary Authority of Singapore (MAS) called Project Guardian. This project aims to use tokenized securities in global markets to increase liquidity and reduce costs. SBI Digital Markets is developing a cross-border framework for tokenized assets, and they are planning to release their first structured note, which will be supported by luxury wine assets.
They also plan to release products based on intellectual property and commodities. Project Guardian is also exploring a tokenized money market fund with UBS Asset Management. This pilot will use blockchain technology to simplify fund subscription and redemption processes. The project is designed to promote institutional adoption of digital assets by using both public and private blockchain technology.
Public blockchains are open and permissionless, while private blockchains are closed and permissioned. Other players in the Singapore region are also involved in this project. Standard Chartered is exploring digital bond issuance using tokens from Ethereum and Stellar. HSBC, in partnership with Temasek, is testing tokenized sustainable bonds using private blockchains.
JP Morgan, a long-standing partner of Project Guardian, has also tested tokenized deposits on public and private blockchains to improve settlement efficiency in cross-border transactions and tokenized portfolios.
