S&P Global Ratings Joins Singapore’s MAS Project Guardian to Explore Asset Tokenization

S&P Global Ratings Joins Singapore’s MAS Project Guardian to Explore Asset Tokenization

Independent credit ratings provider S&P Global Ratings has officially joined the Monetary Authority of Singapore’s (MAS) Project Guardian, aiming to delve into asset tokenization. The announcement was made on Thursday, highlighting S&P’s role in enhancing risk assessment within the fixed income workstream of the project. The company plans to develop analytic frameworks, assessments, and benchmarks in digital assets and tokenized markets.

Andrew O’Neill, Digital Assets Analytical Lead at S&P Global Ratings, emphasized the transformative potential of digitalization in capital markets, particularly through innovations in tokenized bonds. He stated, “We aim to bring our risk perspective and insights to this forum to support robust risk mitigation as this technology is applied in financial markets.”

Chief DeFi Officer Chuck Mounts added that S&P’s comprehensive risk assessment capabilities would benefit both traditional finance (TradFi) and decentralized finance (DeFi) clients.

S&P and Financial Heavyweights Join Forces in Project Guardian

The announcement of S&P Global Ratings’ participation follows a month after Deutsche Bank, a German multinational investment bank, joined Project Guardian. Deutsche Bank will test an open architecture and interoperable blockchain platform for servicing tokenized assets as part of the collaboration.

Project Guardian, spearheaded by MAS, seeks to explore various use cases of asset tokenization, including listing, distribution, trading, settlement, and asset servicing. The initiative includes participation from international policymakers and banking giants such as BNY Mellon, DBS, JP Morgan, and MUFG.

On Thursday, MAS announced the expansion of initiatives to scale asset tokenization for financial services. The city-state’s central bank has collaborated with 24 financial institutions over the past two years under Project Guardian.

Additionally, MAS announced the successful completion of the first phase of the Global Layer One (GL1) initiative, an extension of Project Guardian, involving 17 financial institutions. This initiative has enabled seamless cross-border transactions and trading of tokenized assets across liquidity pools.

Leong Sing Chiong, Deputy Managing Director of MAS, remarked, “The GL1 initiative is an important next step to realize the potential of asset tokenization and reap efficiencies in capital markets.”

As S&P Global Ratings joins Project Guardian, its contributions are expected to play a crucial role in advancing the understanding and implementation of asset tokenization, ultimately driving innovation and efficiency in the financial markets.

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