S&P Global Ratings Teams Up with Singapore MAS’s Project Guardian
Sujha Sundararajan
Last updated: June 28, 2024, 03:36 EDT | 1 min read
In a strategic move, independent credit ratings provider S&P Global Ratings has partnered with the Monetary Authority of Singapore’s Project Guardian to delve into the realm of asset tokenization. The collaboration was officially unveiled on Thursday, with S&P committing to enhancing risk assessment within the fixed income workstream. Specifically, S&P will craft analytical frameworks, evaluations, and benchmarks for digital assets and tokenized markets.
Andrew O’Neill, the Digital Assets Analytical Lead at S&P Global Ratings, is optimistic about the transformative potential of digitalization in capital markets, spurred by recent advancements in tokenized bonds. Chief DeFi Officer Chuck Mounts highlighted the value of S&P’s robust risk assessment capabilities in serving clients from both traditional finance (TradFi) and the crypto-native decentralized finance (DeFi) sectors.
This development follows Deutsche Bank, a German multinational investment bank, joining Project Guardian a month earlier. As part of the collaboration, Deutsche Bank will explore an open architecture and interoperable blockchain platform for managing tokenized assets.
Project Guardian’s primary goal is to investigate various applications of asset tokenization, encompassing listing, distribution, trading, settlement, and asset servicing. Noteworthy participants in this initiative include international policymakers and financial heavyweights such as BNY Mellon, DBS, JP Morgan, and MUFG.
On Thursday, MAS announced an extension of efforts to promote asset tokenization for financial services. The central bank of Singapore highlighted its collaboration with 24 financial institutions over the past two years under Project Guardian. MAS also reported the successful conclusion of the initial phase of the Global Layer One (GL1) initiative, an extension of the ambitious Project Guardian involving 17 financial institutions. This initiative has streamlined cross-border transactions and asset trading across different liquidity pools.
Leong Sing Chiong, Deputy Managing Director of MAS, emphasized the significance of the GL1 initiative in unlocking the potential of asset tokenization and driving efficiencies in capital markets.
Follow Us on Google News