Germany’s Deutsche Bundesbank has joined Project Guardian, a collaborative initiative of the Monetary Authority of Singapore, to promote the tokenization of assets.
Deutsche Bundesbank, Germany’s central bank, has joined Singapore’s Project Guardian, an initiative between policymakers and the financial industry to improve financial markets through the tokenization of assets.
In a Nov. 8 press release, the German central bank said it plans to deepen cross-border cooperation and promote discussion on “standardization and interoperability of digital assets.”
Under the cooperation agreement, Deutsche Bundesbank will test an interoperable blockchain platform for tokenized and digital funds, although details have yet to be announced. Leong Sing Chiong, Deputy Director of the Monetary Authority of Singapore, expressed the belief that the Bundesbank’s expertise “will be invaluable as we work together to improve the liquidity and efficiency of financial markets through asset tokenization. ”
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Burkhard Balz, board member of the Deutsche Bundesbank, says that MAS is working intensively on innovative topics that Germany is also dealing with in Europe, such as pilots with distributed ledgers or blockchain networks. According to Balz, the German central bank wants to leverage the initiative’s resources to figure out how tokenization of assets can be “meaningfully used in the financial sector.”
In early November, Singapore announced its intention to promote the commercialization of tokenized assets by developing market infrastructures, deepening liquidity and establishing sectoral frameworks to support cross-border transactions. According to Chiong, the country has “shown a strong interest in asset tokenization in recent years, especially in the areas of fixed income, currency and asset management.”
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