Singapore to target DeFi potentials with new JPMorgan partnership
The Financial Authority of Singapore (MAS) has launched a digital asset pilot program to look at the potential of asset tokenization and decentralized finance tagged “Venture Guardian.”
Venture Guardian is a collaboration between the regulator and several other key monetary gamers who will function belief anchors. The pilot entails establishments equivalent to JPMorgan Chase & Co., Marketnode Pte, and DBS Financial institution Ltd.
The challenge goals to develop use circumstances for asset tokenization in a number of sectors like open, interoperable networks and DeFi protocols that establishments can use. Its pilot scheme will study how DeFi may be utilized by tokenized bonds and deposit liquidity swimming pools in wholesale funding markets.
The deputy prime minister and coordinating Minister for Financial Insurance policies, Heng Swee Keat, introduced the initiative through the Asia Tech x Singapore summit.
In keeping with the chief fintech officer on the MAS, Sopnendu Mohanty,
“By way of sensible experimentation with the monetary trade and the broader ecosystem, we search to sharpen our understanding on this quickly reworking digital belongings ecosystem.”
Singapore’s strict crypto rules
Singapore is likely one of the first international locations to control cryptocurrencies and using blockchain know-how. It established a licensing regime for crypto corporations a couple of years in the past.
However the candidates have been annoyed by the method, which has led to delayed approvals. The nation additionally just lately imposed a ban on crypto promoting. This ban is a part of Singapur’s efforts to mitigate the dangers of crypto belongings.
Earlier this 12 months, the managing director of MAS, Ravi Menon, warned in regards to the dangers of cryptocurrencies. He stated that malicious gamers may use digital belongings for terrorism financing and cash laundering. However a stringent licensing course of may assist flip the nation right into a “accountable world crypto hub.”
Nonetheless, the transfer has led crypto corporations to maneuver to different extra pleasant jurisdictions like Dubai. In current months, a number of crypto corporations with headquarters in Singapore, equivalent to ByBit Fintech Ltd, Three Arrows, and Binance Holdings Ltd, have moved their headquarters or a major a part of their operations to Dubai.
