The Monetary Authority of Singapore (MAS) carried out a fiat-currency operation as part of a pilot project to explore the potential of DeFi for оптового финансирования. The announcement was made on the agency’s website.
During the test, DBS Bank, JPMorgan and SBI Digital Asset Holdings interacted with liquidity pools composed of tokenised Japanese yen, the Singapore dollar, and Singapore government securities.
The technology from Polygon was employed to minimise transactional costs in carrying out financial operations associated with KYC-procedures.
1st, we used @0xPolygon for the trade because we wanted to do this on #Ethereum and needed cheap gas fees for some expensive operations around Identity verification. Future phases of Guardian will explore other blockchains too given the MAS goal for open/interoperable networks.
— Ty Lobban (@TyLobban) November 2, 2022
On the second step, the institutional platform Aave Arc was used, adopting a “permissioned-pools” concept. It allowed setting various parameters, including interest rates.
2nd, we used @AaveAave so that we could leverage their permissioned pools concept. We deployed a modified version of Aave Arc so that we could set certain parameters such as interest rate and fx rates. You can see the lending pool we deployed here https://t.co/GUbjTIKLN5
— Ty Lobban (@TyLobban) November 2, 2022
Subsequently, JPMorgan issued tokens representing tokenised Singapore dollar deposits.
3rd, we issued Tokenized Singapore Dollar Deposits! 💸This is a deposit token which is a general liability of JPM. It’s a native token giving stable on-chain value without the scalability issues of stablecoins. This is the 1st issuance of Tokenized Deposits by a Bank!
— Ty Lobban (@TyLobban) November 2, 2022
The finance executive Ty Lobban stressed that subsequent stages of the pilot would also involve other blockchains.
According to MAS officials, the new approach eliminates costs associated with using intermediaries for clearing and other settlements, as well as with the “managing bilateral trading relationships” in over-the-counter markets.
Earlier, the Monetary Authority of Singapore proposed to tighten regulation of the crypto industry.
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