Regulatory ActionAnnouncedJapan’s SBI Digital Asset Holdings Joins Project MAS’ Guardian
Milestone Date: September 2, 2022
Launched in May, the Monetary Authority of Singapore (MAS)’s Project Guardian includes a variety of pilots, one of which is a program that focuses on digital assets using tokenization on public blockchains. Today, Japan’s SBI Digital Asset Holdings joined that pilot alongside JPMorgan and DBS Bank.
The purpose of Project Guardian is to explore opportunities for financial institutions to leverage the decentralized finance (DeFi) approaches of blockchain technology in the three primary areas: asset and wealth management; fixed income; and foreign exchange trading (Forex).
The core element of DeFi is its intermediary-free automation, which allows for more efficient transactions. This poses an opportunity for a reduction in costs and can potentially make financial services more affordable for investors. Automation also allows for 24/7 trading versus waiting for standard business hours.
MAS is exploring these possibilities in a controlled environment with the pilot program participants mentioned while acting as “trust anchors.” The role of a trust anchor is to vet participants within the permissioned DeFi protocols and tackle issues related to market manipulation and operational hazards.
SBI has already been active with blockchain and tokenization in Japan. “Our core mission at SBI DAH is to re-imagine and transform the capital markets and banking value chains through the deployment of digital technology,” said Fernando Vazquez Cao, SBI Digital Asset Holdings’ CEO.
By Elizabeth Morrison
Published:September 22, 2022