Introduction
Singapore continues to position itself as a global financial hub, and innovation has become a key driver of its growth. The Monetary Authority of Singapore (MAS) has launched Project Guardian, an ambitious initiative that explores the use of tokenisation to build an open and interoperable financial ecosystem. This project has captured international attention, with leading financial institutions and technology providers collaborating under MAS’s guidance.
But what exactly is Project Guardian, and why does it matter to businesses and investors in 2025?
What is Project Guardian?
Project Guardian is an MAS-led initiative designed to test the feasibility of tokenising financial assets such as bonds, equities, and investment funds. Tokenisation involves representing real-world assets on digital ledgers, allowing them to be traded, settled, and managed in near real time.
Unlike experimental blockchain projects, Project Guardian is grounded in practical financial applications, focusing on areas like:
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Asset Tokenisation: Converting traditional securities into digital tokens for faster, more efficient trading.
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Decentralised Finance (DeFi) Protocols: Exploring how regulated DeFi models can operate within Singapore’s financial system.
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Cross-Border Interoperability: Ensuring digital asset transactions can move seamlessly across markets and jurisdictions.
Why MAS is Driving Tokenisation in Finance
MAS recognises that traditional finance is often constrained by manual processes, settlement delays, and high costs. Tokenisation addresses these issues by:
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Reducing Settlement Risk: Real-time clearing and settlement of trades lowers counterparty risk.
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Improving Efficiency: Digital assets remove layers of intermediaries, cutting transaction costs.
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Enabling Fractional Ownership: Investors can access smaller portions of high-value assets, broadening market participation.
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Enhancing Transparency: Distributed ledgers ensure greater visibility and accountability in financial transactions.
By piloting these use cases, MAS is setting the stage for future-ready financial infrastructure.
Amendment to FRS 119: Reduced Disclosures Extended to More Entities
Benefits of an Open and Interoperable Financial Ecosystem
The vision of Project Guardian is not just about digital assets—it’s about creating a networked financial system where participants across jurisdictions can transact securely and efficiently.
Key benefits include:
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Global Accessibility: Businesses and investors can access tokenised products across multiple markets.
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Greater Liquidity: Tokenisation unlocks liquidity in traditionally illiquid assets like private equity and real estate.
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Innovation for Businesses: Corporates can raise capital more flexibly using digital asset issuance.
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Cross-Border Synergy: Interoperability allows regional and global financial institutions to collaborate with Singapore.
Key Takeaways for Businesses and Investors
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Businesses should watch closely, as tokenisation may open new financing models. Early adoption can offer competitive advantages.
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Investors may gain access to diversified, tokenised portfolios with lower entry barriers.
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Financial Institutions will need to adapt to regulatory frameworks while experimenting with new DeFi-enabled services.
Ultimately, Project Guardian highlights Singapore’s commitment to innovation balanced with regulation—a formula that strengthens its role as a trusted global financial hub.
Conclusion
Project Guardian represents a bold step into the future of finance. By embracing tokenisation, interoperability, and open ecosystems, MAS is leading the way in redefining how capital markets operate. For businesses, this means new opportunities for capital raising and cross-border expansion. For investors, it signals broader access to previously exclusive asset classes.
As Project Guardian continues to evolve, Singapore will remain at the forefront of global financial innovation, shaping the next era of digital and tokenised markets.
Disclaimer: This article is for informational purposes only and does not constitute any professional advice. Feel free to contact us to consult with our professional advisors team for personalized advice and guidance.
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