Terence K. J. Nunis, Consultant’s Post

The Monetary Authority of Singapore (MAS) announced plans to support the commercialisation of asset tokenisation.  MAS will expand activities under The Global Layer One (GL1) Initiative to design an open digital infrastructure of international standards.  This will align governance, risk management controls, and settlement arrangements for cross-border transactions.  MAS aims to form commercial networks to deepen liquidity in tokenised assets through Project Guardian.  This will facilitate seamless transactions of tokenised assets across networks.  Two industry frameworks, the Guardian Fixed Income Framework (GFIF) and the Guardian Funds Framework (GFF), have been published to guide the implementation of tokenisation in debt capital markets and funds.  MAS will facilitate access to common settlement assets, including the Singapore dollar wholesale central bank digital currency (CBDC), for market testing purposes.  This initiative will improve fundraising, secondary trading, asset servicing, and settlement of tokenised assets.  It will also support the development of digital infrastructure and common standards to enable industry-wide adoption of tokenisation. Based on this, I posit MAS could potentially accept tokenised carbon credits.  MAS has already shown interest in supporting innovative financial solutions, including the commercialisation of asset tokenisation.  MAS has launched the Transition Credits Coalition to develop a new class of carbon credits aimed at accelerating the closure of coal-fired power plants.  Tokenised carbon credits align with MAS’s goal of promoting sustainable finance and supporting the transition to a low-carbon economy.  Tokenisation improves the efficiency of carbon markets by simplifying transactions and increasing liquidity.  By facilitating the trading of tokenised carbon credits, MAS helps achieve global climate goals, such as reducing greenhouse gas emissions and promoting renewable energy. MAS has launched the Transition Credits Coalition, which includes financial institutions, carbon exchanges, standard setters, and NGOs.  This coalition aims to develop a new class of carbon credits to accelerate the closure of coal-fired power plants.  MAS has initiated pilot projects to test the use of high-integrity transition credits in transactions for the early retirement of coal-fired power plants.  These credits are generated by retiring a coal plant early and replacing it with clean energy sources.  This is a good base to expand to general trading of fungible compliance carbon credits. Terence Nunis Terence K. J. Nunis, Consultant President, Red Sycamore Global

The Monetary Authority of Singapore (MAS) announced plans to support the commercialisation of asset tokenisation.  MAS will expand activities under The Global Layer One (GL1) Initiative to design an open digital infrastructure of international standards.  This will align governance, risk management controls, and settlement arrangements for cross-border transactions.  MAS aims to form commercial networks to deepen liquidity in tokenised assets through Project Guardian.  This will facilitate seamless transactions of tokenised assets across networks.  Two industry frameworks, the Guardian Fixed Income Framework (GFIF) and the Guardian Funds Framework (GFF), have been published to guide the implementation of tokenisation in debt capital markets and funds.  MAS will facilitate access to common settlement assets, including the Singapore dollar wholesale central bank digital currency (CBDC), for market testing purposes.  This initiative will improve fundraising, secondary trading, asset servicing, and settlement of tokenised assets.  It will also support the development of digital infrastructure and common standards to enable industry-wide adoption of tokenisation. Based on this, I posit MAS could potentially accept tokenised carbon credits.  MAS has already shown interest in supporting innovative financial solutions, including the commercialisation of asset tokenisation.  MAS has launched the Transition Credits Coalition to develop a new class of carbon credits aimed at accelerating the closure of coal-fired power plants.  Tokenised carbon credits align with MAS’s goal of promoting sustainable finance and supporting the transition to a low-carbon economy.  Tokenisation improves the efficiency of carbon markets by simplifying transactions and increasing liquidity.  By facilitating the trading of tokenised carbon credits, MAS helps achieve global climate goals, such as reducing greenhouse gas emissions and promoting renewable energy. MAS has launched the Transition Credits Coalition, which includes financial institutions, carbon exchanges, standard setters, and NGOs.  This coalition aims to develop a new class of carbon credits to accelerate the closure of coal-fired power plants.  MAS has initiated pilot projects to test the use of high-integrity transition credits in transactions for the early retirement of coal-fired power plants.  These credits are generated by retiring a coal plant early and replacing it with clean energy sources.  This is a good base to expand to general trading of fungible compliance carbon credits. Terence Nunis Terence K. J. Nunis, Consultant President, Red Sycamore Global

The Asian Infrastructure Investment Bank (AIIB) has issued its first digital native note (DNN) with Euroclear on the Luxembourg Stock Exchange. Citi acted as a dealer as well as issuing and paying agent; BMO Capital Markets was also a dealer. The move is an important step in the evolution of the bond market and the digitalisation of capital markets. For those not yet subscribers, please register to read more after clicking on the link below: #digitalnativenote #bonds #digitalisation #DNN https://lnkd.in/gJ_KYgvM

Real-world asset tokenisation: A game changer for global trade by Standard Chartered Standard Chartered Corporate & Investment Banking & Synpulse 🔰 Discover the power of trade finance tokenisation At Standard Chartered, we are committed to advancing the adoption of digital assets and #unlocking its full #potential to solve for real challenges in global trade, and to power real economies. 🔰 Building on learnings from our tokenisation initiatives over the past year, including Project #Guardian and Project #Dynamo, we share with you our new paper focused on the unprecedented opportunities trade finance asset tokenisation can bring to global trade, and the real #problems it can help solve. 🔰 The “Real-world asset tokenisation (RWA) : A game changer for global trade” paper below to learn more about why trade finance #tokenisation is so promising and why now is the time to adopt and scale this. ✅ Our Vision ✅ ❇ This report explores the transformative potential of tokenising real-world assets #RWA, particularly trade finance assets. The principal conclusion is that #tokenisation can significantly enhance #liquidity, divisibility, and accessibility of traditionally complex asset classes. By converting trade assets into transferable digital tokens, the process unlocks new investment opportunities and aims to narrow the global trade finance #gap, currently estimated at USD 2.5 trillion. ❇ Standard Chartered's pilot within the Monetary Authority of Singapore's Project Guardian demonstrates the #viability and benefits of this innovation. The pilot successfully tokenised trade finance assets, creating a new asset-backed security token on the Ethereum #blockchain, which offers a practical framework for future large-scale implementations. ❇ The paper argues that tokenisation will play a crucial role in the future financial ecosystem by providing a bridge between traditional financial (#TradFi) markets and emerging digital asset infrastructures. This integration promises to address #inefficiencies and increase inclusiveness in financial markets, ultimately facilitating a more open and interoperable financial system. The next three years are #highlighted as critical for the adoption and #scaling of tokenised assets, with banks playing a pivotal role in this transition by leveraging their position of trust and extensive networks. ❇ Standard Chartered is committed to advancing this #innovation, anticipating a convergence of traditional and #tokenised markets, supported by a multi-asset, multi-currency digital infrastructure that balances security and inclusiveness . More information: https://lnkd.in/dK2MYGR2 #RWA #digitalassets #problems #innovation #Blockchain #adoption

The European Investment Bank issued a €105M digital bond on HSBC Orion. Meanwhile, in Singapore, two of the world’s largest banks have completed the implementation of a tokenized fund that demonstrated how smart contracts can automate asset management. https://lnkd.in/eijKq8bR

We welcome the Monetary Authority of Singapore (MAS)’s announcement to push ahead with plans for asset tokenisation in financial services and enable commercialisation of the industry. As a leading trade bank, Standard Chartered has been at the forefront of the Guardian Wholesale Network industry group, as we build upon the momentum of Project Guardian. We're proud to be collaborating with the MAS and fellow financial institutions to integrate individual pilots and establish a robust, multi-member tokenised asset network. We recognise these efforts can significantly enhance liquidity for tokenised assets in both primary and secondary markets. Not only does this partnership underscores our commitment to innovation and leadership in digital finance, it will allow us to continue contributing to Singapore's growth as a leading digital finance hub. Looking ahead, our participation will also enable us to better serve our clients, facilitate seamless transactions and shape the future of the digital assets landscape.

Hong Kong's Financial Secretary Showcases Groundbreaking Financial Innovations and Sustainability Efforts in Netherlands Visit The Secretary for Financial Services and the Treasury, Mr Christopher Hui, started his visit to the Netherlands on June 3. During his stay in the country, Mr Hui met with senior financial officials and financial regulators, as well as professionals from fintech and asset management fields. He also joined Money 20/20 Europe, the largest fintech event in Europe for pioneers and companies from the arenas of payments, fintech and financial services. Mr Hui participated in the fireside chat "Regulating the Next Wave of Financial Innovation: Lessons from the East" at Money 20/20 Europe on June 4 (Amsterdam time). He focused on Hong Kong's initiatives including tokenisation of real world assets and payment, and how they could be applied to companies/institutions around the world. Mr Hui said the Hong Kong Special Administrative Region (HKSAR) Government took the global lead in issuing two batches of tokenised green bonds. The first batch issued in February 2023 was the first government green bond issued by tokenisation in the world. The second batch, a multi-currency (Hong Kong dollar, Renminbi, euro, and US dollar) bond issued in early 2024 and amounting to US$770 million, was the first multi-currency government green bond issued in a digitally native format globally. The second issuance included multiple innovations that broadened investor access, supported interoperability, and improved transparency and efficiency. The issuance also attracted subscription by a wide spectrum of institutional investors globally, from financial institutions (including some major asset managers, banks and insurance companies) to non-financial institutions.  #bond #insurance #asset #HongKong

We are thrilled to have Avalanche's support for the Misyon Tokenization Platform. Our innovative tokenization solution is set to revolutionize investment and wealth management, making it more efficient, secure, and accessible. https://lnkd.in/dCFhXpAf Misyon Yatırım Bankası A.Ş. #blockchain #tokenization

Through a series of forward-thinking initiatives, Singapore is demonstrating how traditional finance can evolve into a more efficient, accessible, and interconnected ecosystem. The Monetary Authority of Singapore (MAS) has identified four critical components that will transform asset tokenization from concept to reality: Deepening Liquidity The formation of the Guardian Wholesale Network, comprising global giants like Citi, HSBC, and Standard Chartered, marks a decisive step toward creating deep, liquid markets for tokenized assets. Building Infrastructure The Global Layer One (GL1) initiative, supported by financial powerhouses including BNY, J.P. Morgan, and MUFG, is creating the digital backbone for tomorrow's financial markets. Standardizing Frameworks Two important frameworks have been introduced: - The Guardian Fixed Income Framework (GFIF) for debt markets - The Guardian Funds Framework (GFF) for investment vehicles Enabling Settlement The SGD Testnet represents a significant advancement, offering three key features: - A robust settlement facility - Programmable transactions - Seamless interoperability with existing systems Consider these transformative scenarios: For Investment Managers: A Singapore-based fund manager can now structure a multi-currency portfolio with real-time settlement across different asset classes, reducing what used to take days to mere minutes. For Corporate Treasurers: A multinational corporation can optimize its treasury operations by programming automated forex hedging based on real-time exposure across multiple jurisdictions. The numbers tell a compelling story: - Over 40 financial institutions engaged - 15+ industry trials conducted - 6 currencies tested - 7 jurisdictions involved. The recent addition of major players like Deutsche Bundesbank, Fidelity International, and the World Bank to Project Guardian demonstrates the global recognition of Singapore's initiatives. As noted by MAS Deputy Managing Director Leong Sing Chiong, we've reached a critical juncture where the focus shifts from proving concepts to achieving scale. The challenge now lies in bridging the gap between successful pilots and widespread adoption. For financial institutions, the message is clear: the future of finance is being built in Singapore, and those who align with this vision will be best positioned to thrive in the digital asset era. The combination of regulatory clarity, technological infrastructure, and market participation creates an unprecedented opportunity for innovation and growth.

🏦💡 Finance Reimagined! 'Deutsche Bank Champions Tokenization as Future of Finance Innovation' examines how Deutsche Bank is leading the charge in embracing tokenization to transform financial services. Discover the future now!