Deutsche Bundesbank collaborates with Project Guardian to advance asset tokenization, aiming to foster a global digital asset ecosystem.
Germany’s Deutsche Bundesbank has officially collaborated with Project Guardian, a collaborative initiative led by the Monetary Authority of Singapore (MAS), to advance asset tokenization in the global financial market. The announcement was made on November 8 through a press release. It marks a significant step in the ongoing efforts to leverage innovative technologies, including blockchain and distributed ledger technology (DLT), in the financial sector.
MAS announced Project Guardian in May 2022 to increase the effectiveness of financial markets by tokenizing assets. It is a platform set up to engage participants from the financial policy and leading financial market participants to discuss the possibilities of the digital asset.
Burkhard Balz, a Deutsche Bundesbank’s Executive Board member, voiced the same opinion. He added that he was glad to cooperate and stressed that the work underway in MAS was similar to initiatives launched in Europe. He stressed the need to appropriately utilize new technologies, such as blockchain, in the financial industry.
Bundesbank Strengthens Role in Digital Assets with Project Guardian Partnership
Deutsche Bundesbank becomes the latest policymaker to bring its voice to Project Guardian. This global collaborative effort seeks to enhance dialogue on creating international policies related to digital assets. In addition, the group’s objective is to create frameworks that will foster sustainable growth of the digital asset ecosystem. In the Asset & Wealth Management, the Bundesbank will test a Shared Blockchain Architecture for a tokenized fund as a building block towards developing a digital financial ecosystem.
The primary goal of Project Guardian is to construct industry reference models for asset tokenization. It will also establish policy and technological directions for digital assets and build a viable environment with real business use cases. Moreover, its purpose is to overcome the obstacles to establishing new digital assets as financial instruments.
MAS Deputy Managing Director Leong Sing Chiong expressed his appreciation to Deutsche Bundesbank and agreed to participate in the project. He states that it will be very important in achieving its objectives. Further, he noted that the cooperation would help enhance market depth and speed through tokenization.
As a result of its membership in Project Guardian, the Deutsche Bundesbank will enhance its presence in the context of digital assets worldwide. It also collaborates with MAS to help define the landscape of tokenized finance and build a better-connected and efficient financial ecosystem.
