Deutsche Bank has joined Project Guardian, the Monetary Authority of Singapore’s (MAS) asset tokenisation testing initiative.
The German multinational bank will test an open architecture and interopel blockchain platform to service tokenized and digital bonds. The project is being conducted with finance industry representatives, such as Deutsche, as well as regulatory representatives.
Following testing, Project Guardian aims to propose protocol standards and identify best practice to contribute to industry progress. The untapped potential of tokenization has become a key area of focus for many finance and banking stakeholders.
Anand Rengarajan, Deutsche Bank Head of Securities Services for Asia Pacific and the Middle East and Global Head of Sales, said: “We are committed to being a leader in driving the development and adoption of digital assets in Singapore and Asia Pacific.
“Contributing to Project Guardian will bolster our efforts to help shape the new frontier of asset servicing, and strongly position us to contribute to industry progress, and not only anticipate our clients’ needs but exceed their expectations.”
Overseen by Singapore’s sovereign wealth fund, Project Guardian is a multi-year initiative. Other state-backed bodies, chiefly regulators, involved in the project are the UK’s Financial Conduct Authority (FCA), Switzerland’s Financial Market Supervisory Authority (FIMNA) and Japan’s Financial Services Agency (FSA).
Various technologies have come to the forefront of finance in recent years, least among these Open Banking, artificial intelligence (AI), and various use cases for blockchain technology.
Some stakeholders and central bodies, such as the EUrosystem, are eagerly chasing the potential of Distributed Ledger Technology (DLT) for example. Meanwhile, prominent payment firms such as Mastercard have also looked to step up tokenisation capabilities.
Deutsche Bank’s efforts in blockchain extends beyond the use of just blockchain to engagement with cryptocurrency. In September last year it launched a crypto custody service, part of its stated mission of developing a safe space for cryptocurrency investment.
Regarding its collaboration with MAS, the bank has appointed Boon-Hiong Chan, Deutsche Asia Pacific Head of Securities & Technology Advocacy and Industry Applied Innovation Lead, as its lead for Project Guardian. It will also work closely with decentralised finance and hyper-chain zero-knowledge focused firm Memento Blockchain as part of the project.
Mike Clarke, Deutsche Bank’s Global Head of Securities Services Product Management, added: “Collaborating with leading fintechs and digital natives is key to engineering technologically advanced asset servicing products.
“This will not only enhance our competitiveness but empower us to create more value. Through Project Guardian, and our work on relevant standardisation areas, we hope to elevate the sound and tangible benefits that technology and collaboration can bring to clients and the industry.”