Investment Associations Join MAS’ Project Guardian

Project Guardian, a multi-year project headed by the Monetary Authority of Singapore (MAS) to advance tokenisation in capital markets has received a further boost with news that two trade associations representing the asset manager community have joined the initiative.

The UK’s Investment Association (IA) and the Investment Management Association of Singapore (IMAS) have become the first domestic trade associations and the first asset management-specific bodies to join Guardian, although individual firms such as Fidelity International, Schroders and T Rowe Price have taken part in individual pilots previously.

Earlier this year, a report based upon the work of Project Guardian claimed that tokenisation in FX settlement could save banks up to $50 billion, as part of the wider initiative that targets enhanced liquidity and efficiency across asset classes. The IA and IAMS will join other associations already involved in the project, including GFMA, ISDA and Swift.

“Tokenisation and digital markets are a huge focus area with significant growth potential for the UK investment management industry,” observes Chris Cummings, CEO of the IA. “Blockchain and tokenised assets are not constrained by borders, and the Investment Association is delighted to have been invited to join Project Guardian to drive international coordination as we design the future of the global financial system.

“We have long advocated for fund modernisation and innovation through our Investment Fund 3.0 agenda, a vision for the tokenisation of a UK funds industry whose full value chain is operated on Distributed Ledger Technology,” he continues. “We look forward to working with MAS, IMAS and all other Project Guardian participants to share market experiences and drive forward innovative regulatory developments for the benefits of investors across the globe.”

Carmen Wee, CEO of IMAS, adds, “Tokenisation offers real potential to enhance cross-border access and efficiency while reducing costs, making investments accessible. A trusted and inclusive digital economy must be built on connectivity and cooperation. IMAS is committed to working with our partners to build a resilient and interoperable ecosystem, one where investors and managers better understand the opportunities and risks of tokenised assets. We look forward to working closely with MAS, FCA and the IA in this exciting initiative.”