Japan’s SBI Digital Markets (SBIDM), a subsidiary of the SBI Group, is solidifying its integral role in the Monetary Authority of Singapore’s (MAS) Project Guardian. The firm recently announced its plans to launch new pilot projects, aimed at propelling the adoption of tokenized securities in global markets.
Working alongside prominent financial institutions, SBIDM is at the helm of creating a cross-border framework for tokenized assets. The initiative seeks to connect regulated digital asset exchanges across various regions. The objective is to enhance liquidity and reduce costs in the process.
One of the key pilots announced is the Fixed Income project. SBIDM is striving to establish an international network for tokenized asset-backed securities. The project covers both the initial issuance and secondary trading of these securities. The company has disclosed plans to release its first structured note, backed by luxury wine assets, in the near future. This will soon be followed by products linked to intellectual property and commodities.
These securities will be offered in both traditional and digital forms to appeal to a wide range of investors. The company will employ a blockchain-agnostic infrastructure designed to support global transactions.
In collaboration with UBS Asset Management, SBIDM is also working on an Asset and Wealth Management pilot. The project is centred around evaluating a UBS tokenized money market fund. Leveraging the advancements made last year within Project Guardian, the pilot aims to integrate blockchain-powered automation to simplify fund subscription and redemption processes.
Thanks to Chainlink’s Cross-Chain Interoperability Protocol, smart contracts will simplify interactions within the fund and reduce operational expenses. SBIDM has described this as a “fundamental shift” in the $63 trillion mutual fund industry.
These initiatives form part of MAS’s broader vision under Project Guardian. The project aims to advance institutional digital asset adoption through the use of both public and private blockchain technology. Public blockchains are open, permissionless networks, while private blockchains are closed and permissioned.
SBIDM joins other influential players such as Standard Chartered, HSBC, and JP Morgan in Singapore’s concerted effort to expand the region’s tokenization sector under Project Guardian. These efforts underscore the increasing acceptance and utilization of tokenized assets within the traditional financial sector, marking a significant step towards the future of digital finances.
