Singapore regulator to explore DeFi protocol capabilities

The Monetary Authority of Singapore will study the opportunities of DeFi protocols and tokenisation, according to Bloomberg.

The Guardian project will also involve JPMorgan, MarketNote, and DBS. Financial institutions will work through use cases in four main areas:

• open and interoperable networks;
• trust anchors;
• tokenisation of assets;
• institutional DeFi protocols.

The first pilot project envisages the creation of a permissioned liquidity pool. It will consist of tokenised shares and deposits used to provide collateralised loans through smart contracts.

“These early investigations of DeFi solutions will ensure Singapore’s competitiveness as a leading financial centre,” said Han Kui Huan, head of DBS’s Strategic Planning Group.

Earlier, venture firm Alameda Research raised $25 million through the permissioned Maple Finance platform.

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