SBI Expands Tokenization Efforts in Singapore's Project Guardian

In Brief:

Japan’s SBI Digital Markets is enhancing its role in Singapore’s Project Guardian, launching new pilots to advance tokenized securities in global markets, including a cross-border framework for asset-backed securities.

The initiative includes a Fixed Income pilot and collaboration with UBS Asset Management, focusing on tokenized money market funds, leveraging blockchain technology to streamline processes and reduce costs.

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SBI Expands Tokenization Efforts in Singapore's Project Guardian

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Japan’s SBI Digital Markets is strengthening its involvement in the Monetary Authority of Singapore’s (MAS) Project Guardian by launching new pilots aimed at advancing the use of tokenized securities in global markets. Collaborating with leading financial institutions, SBI Group's subsidiary is developing a cross-border framework for tokenized assets to enhance liquidity and reduce costs through regulated digital asset exchanges.

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The Fixed Income pilot by SBIDM is creating an international network for tokenized asset-backed securities, focusing on both initial issuance and secondary trading. The company plans to release its first structured note backed by luxury wine assets in the coming months, followed by products tied to intellectual property and commodities, available in both traditional and digital forms.

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Blockchain-Powered Automation and Collaboration

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In collaboration with UBS Asset Management, the Asset and Wealth Management pilot is evaluating a tokenized money market fund. This pilot builds on last year’s progress within Project Guardian, integrating blockchain-powered automation to simplify fund subscription and redemption processes, enabled by Chainlink’s Cross-Chain Interoperability Protocol.

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SBIDM's efforts are part of MAS’s broader vision to promote institutional digital asset adoption under Project Guardian, leveraging public and private blockchain technology. This initiative joins other significant players like Standard Chartered and HSBC in expanding the region’s tokenization sector, exploring digital bond issuance, and sustainable bonds using both public and private blockchains.

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