S&P Global Ratings explores asset tokenization

S&P Global Ratings announced its participation in the Monetary Authority of Singapore’s (MAS) Project Guardian. This initiative is a collaboration between policymakers and the financial industry.

The goal is to improve the liquidity and efficiency of financial markets using asset tokenization. S&P Global Ratings joins an industry group to expand these efforts into capital markets.

Reference model for open and interoperable blockchain networks. Source: MAS

According to a press announcement , the company will contribute to Project Guardian’s Fixed Income workstream. Their role involves developing analytic frameworks, assessments, and benchmarks in digital assets and tokenized markets.

Chuck Mounts, the Chief DeFi Officer at S&P Global Ratings, stated:

“We are delighted to join Project Guardian. This is another step forward in our commitment to leveraging our robust analytical and risk assessment capabilities to support both traditional finance (TradFi) and the growing universe of crypto-native decentralized finance (DeFi) clients.”

Banks jump on Project Guardian

S&P’s decision follows in the footsteps of JPMorgan’s Onyx. In 2023, Onyx and Apollo collaborated under Project Guardian. They tested the feasibility of using tokenization and smart contracts to create a new paradigm for portfolio management.

This proof-of-concept used permissioned blockchain infrastructure. Onyx by J.P. Morgan has been an active participant in Project Guardian since 2022.

They pioneered a novel digital identity solution and tokenized deposit infrastructure. This infrastructure facilitated their first public blockchain decentralized finance (DeFi) transaction.

Source: MAS

In the same vein, Deutsche Bank announced its involvement in Project Guardian last month. They joined as part of the asset and wealth management workstream. Their focus is on testing the feasibility of asset tokenization applications in regulated financial markets.

Anand Rengarajan, Head of Securities Services for Asia Pacific and the Middle East and Global Head of Sales at Deutsche Bank, emphasized their commitment to leading the development and adoption of crypto in Singapore and Asia Pacific.

He said, “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.”

Jai Hamid