The crypto-verse was started to uphold decentralization. However, things did not seem to go as planned and DeFi emerged. A space that solely focused on all things decentralization. This side of the crypto industry attained immense traction over the years and went on to garner the attention of mainstream firms as well. Now, governments seemed to be taking a keen look into it. Singapore’s financial watchdog has its eyes on decentralized finance, but it’s not regulatory.
The Monetary Authority of Singapore [MAS] has reportedly partnered up with JPMorgan, DBS as well as Marketnode. This collaboration was made to veer into the DeFi space. The project that these behemoths would be working on is called Project Guardian and would be rolled out by the Deputy Prime Minister, Heng Swee Keat.
This next project will look into the possibility of tokenization and DeFi applications. The team will be responsible for managing the risks associated with financial stability and integrity.
In its future pilot, the government plans to analyze and design four significant use cases. The first would investigate into how public blockchains can be used to build more interoperable, open networks. It would also be possible to trade digital assets across different liquidity pools and platforms.
The second would be concerned with establishing a secure environment in which DeFi protocols might be executed. Further reading on the third announcement reads,
“Examine the representation of securities in the form of digital bearer assets and the use of tokenized deposits issued by deposit-taking institutions on public blockchains. The project aims to build upon existing token standards, incorporate trust anchor credentials and enable asset-backed tokens to be interoperable with other digital assets used in DeFi protocols on the open networks.”
