The German Bundesbank has joined Project Guardian, a Singapore-led initiative that aims to reshape global capital markets through asset tokenization.
The Monetary Authority of Singapore launched Project Guardian in 2022 to unite chief financial officers and policymakers around the world. The initiative aims to open new liquidity paths and set standards for token assets.
The German Bundesbank, one of Europe’s major central banks, is participating in the Guardian pilot projects and the Monetary Authority of Singapore has designed these projects to strengthen cross-border digital assets and a cohesive global financial ecosystem.
Burkhard Balz, a member of the Board of Directors of the German Bundesbank, highlighted the project’s alignment with Europe’s focus on distributed ledger technology and blockchain, noting that by joining the group of policymakers in the Guardian project, the central bank aims to strengthen cross-border cooperation and advance discussions. On standardization of digital assets, allowing him to formulate guidelines for regulatory clarity.
The German central bank plans to trial an interoperable blockchain platform for digital and token funds, which the Monetary Authority of Singapore sees as essential for seamless asset management across financial systems.
The Guardian project’s goals include building industry frameworks and governance models for token assets, prioritizing commercially viable digital assets with a focus on regulatory safeguards.
The involvement of the Bundesbank highlights the growing role of central banks in developing a more interconnected and symbolic financial system. Many observers see this partnership as an important step that could influence Europe’s approach to digital finance and encourage other central banks to engage in similar initiatives.
The Guardian Project has brought together major global financial institutions and industry groups to advance asset tokenization and decentralized finance standards.
Key players include DBS Bank, JP Morgan and SBI Digital Asset Holdings, which have implemented…
Operations involving symbolic deposits. Along with Deutsche Bank, the International Capital Market Association (ICMA), and regulatory bodies from the United Kingdom, Switzerland, France, and Japan.
The project aims to set industry standards, promote cross-border cooperation, and build a sustainable digital asset ecosystem.
