The Monetary Authority of Singapore, the country's regulator, intends to study the possibilities of DeFi protocols and tokenization, Bloomberg has reported.
According to the publication, JPMorgan, Marketnote and DBS will also participate in the project, which has been dubbed Guardian. The financial institutions will work on user cases in the areas of open and interoperable networks, trust anchors, asset tokenization and institutional-grade DeFi protocols.
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The first pilot project envisions the creation of an authorized liquidity pool and will consist of tokenized shares and deposits used to provide secured lending through smart contracts.
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Han Kwee Juan, director of strategic planning at DBS, has said:
"These early explorations in DeFi solutions will ensure the competitiveness and relevance of Singapore as a cutting edge financial centre."