Singapore has begun to implement a digital asset tokenization trial project that will help to explore all the possible use cases of Blockchain technology in the local finance system of Singapore. As well, the project aims to explore the possibility of making the city-state a major center for decentralized finance.
Several exchanges have stopped operations in Singapore as a result of the increase in regulatory pressure. While some are trying to comply, operation license approval has been very slow.
Bloomberg, however, reported that Singapore has kickstarted digital asset tokenization projects, which will help research the importance of Blockchain technology. Singapore is working to attract global talents in decentralized finance to the country.
Singapore’s Deputy Prime Minister Heng Swee Keat explained in a statement on Tuesday that ‘Project Guardian’ was the result of a collaboration between the Monetary Authority of Singapore (MAS) and a number of foreign and local banks.
As other countries are attracting crypto talents into their country, Singapore doesn’t want to be left behind in finding the right talent for the future of finance.
The digital asset tokenization will help test if decentralized finance is ripe for the local market and will test the extent of financial risk and see if it can give to the stability and integrity of Singapore.
Singapore is one of the first countries to regulate crypto and to start investigating the use and application of Blockchain technology in local markets. The frustration crypto companies and exchanges have felt as a result of licensing and regulation, however, have forced many crypto organizations to find new homes elsewhere.
Bybit Fintech Ltd, Three Arrows, and Binance were some of the first companies to leave the shores of Singapore and move to Dubai due to less regulation and fewer taxes.
“Through practical experimentation with the financial industry and the broader ecosystem, we seek to sharpen our understanding in this rapidly transforming digital assets ecosystem,” explained MAS Chief Financial Technology Officer Sopnendu Mohanty.
Featured Image: Megapixl © Luisfilipemoreira
