Singapore's central bank works with financial institutions towards tokenisation

Photo: MAS

Singapore's central bank, the Monetary Authority of Singapore (MAS) is actively fostering the tokenisation sector in collaboration with financial institutions to leverage the potential of tokenised funds.

Chia Der Jiun, MAS managing director, highlighted findings from a 2023 Calastone survey showing that 95% of Asia Pacific respondents are exploring or implementing tokenisation projects, with 61% expecting offerings within a year.

UBS Asset Management is digitally issuing Variable Capital Company (VCC) funds to streamline issuance, distribution, and trading by eliminating intermediaries. Schroders and Calastone are also tokenising a VCC fund to enable instant settlement via a shared ledger.

The flexibility of a VCC entity makes it the fund structure of choice for such pilots. MAS is supporting their progression towards commercial viability, with the goal of developing a robust digital infrastructure for efficient cross-border asset transactions.

Article by Goh Thean Eu for Asia Asset Management. Read more here or in the PDF below.

MAS works with financial institutions to grow tokenisation industry _ Asia Asset Managemen.

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