Catenaa, Monday, November 18, 2024 – Germany’s central bank, Deutsche Bundesbank, has officially joined Singapore’s Project Guardian to explore financial market tokenization.
This collaboration, announced on Friday, aims to advance cross-border efforts in asset tokenization with the support of the Monetary Authority of Singapore (MAS).
Launched in May 2022, Project Guardian is a global initiative that brings together policymakers, financial institutions, and industry leaders to examine the potential of digital asset tokenization.
The project seeks to integrate distributed ledger technology (DLT) into financial systems, improving operational efficiency and liquidity.
By joining the initiative, Bundesbank strengthens international collaboration in creating tokenized financial ecosystems.
The bank will focus primarily on the Asset & Wealth Management workstream, where it will help develop interoperable blockchain platforms for managing tokenized funds.
Burkhard Balz, a member of the Bundesbank Executive Board, highlighted the significance of MAS’s work on DLT and blockchain, which is also being explored in Europe.
The collaboration includes pilot projects testing the feasibility of tokenized financial assets across multiple jurisdictions.
Notable projects include a pilot by UBS Asset Management, Swift, and Chainlink, which successfully settled tokenized fund subscriptions and redemptions through Swift’s network, demonstrating the potential operational benefits of blockchain integration.
As the Bundesbank participates in these pilots, it aims to refine solutions for tokenized fund transfers, addressing operational challenges and contributing to the adoption of blockchain technology in global financial markets.
This partnership aligns with the initiative’s goal to create a commercially viable digital asset ecosystem with enhanced market efficiency.
