Singapore’s Financial Regulator Wants to Explore DeFi Protocols

The Monetary Authority of Singapore (MAS) will explore the possibilities of DeFi protocols and tokenization, Bloomberg has reported.

According to the publication, Marketnote, JPMorgan and DBS will also participate in the Guardian project. Financial institutions will work on open and interoperable networks, trust anchors, asset tokenization and institutional level DeFi protocols.

The first pilot project involves the creation of a permissioned liquidity pool. It will consist of tokenized shares and deposits used to provide secured loans through smart contracts.

Han Kwee Juan, head of strategic planning at DBS, has commented on the initiative:

“These early studies of DeFi solutions will ensure the competitiveness of Singapore, which is leading financial center.”