Recently, the monetary authorities of four countries, Singapore, Japan, the United Kingdom, and Switzerland, have officially collaborated to establish the Guardian project.
The goal of this partnership is to experiment with tokenizing products related to foreign exchange, asset management, and fixed interest rates. Additionally, it aims to promote cross-border cooperation.
Specifically, the Guardian project focuses on:
1. Promoting discussions on the legal framework, policies, and accounting methods for digital assets.
2. Financial reporting and auditing of digital assets.
3. Identifying potential risks and vulnerabilities in existing policies and regulations related to tokenization solutions.
4. Exploring the development of common standards for designing digital asset networks and best practices in different legal jurisdictions.
5. Facilitating test programs for digital assets through regulatory sandboxes.
6. Promoting knowledge sharing between regulatory authorities and the digital asset industry.
“The collaboration of these four countries demonstrates the strong commitment of policy makers to enhance our understanding of the opportunities and risks arising from digital asset innovation.”
– Leong Sing Chiong, Deputy Managing Director, Monetary Authority of Singapore
Tokenization is the process of converting real-world assets (Real World Assets or RWAs) into tokens or NFTs, making them usable in DeFi. Currently, RWAs are a particularly interesting topic in the crypto community, with even the Federal Reserve issuing reports on RWAs.
While RWAs are considered a potential narrative and are being planned for development by many crypto projects and financial giants, integrating and applying RWAs is likely to take a relatively long time. The current market still has significant financial gaps between various asset types.