The region's leading financial regulator, the Monetary Authority of Singapore, has partnered with the financial sector to introduce “Project Guardian”. The initiative aims to study use cases of asset tokenization and decentralized finance (DeFi) and seeks to make the region a hub for the cryptocurrency market.
The first phase of the project will seek to introduce DeFi technology into financing markets. This phase will be led by DBS Bank, the largest bank in Singapore, as well as JPMorgan Chase and cryptocurrency firm Marketnode.
The “Guardian Project” will also aim to ensure that the DeFi universe does not pose risks to the country's financial stability.
Another vital goal of the collaboration is to attract and retain blockchain talent and businesses in the region. The project comes nearly two months after Bybit moved its global headquarters from Singapore to Dubai. Shortly thereafter, hedge fund Three Arrows Capital revealed similar intentions.
Ravi Menon, head of the Monetary Authority of Singapore, said the regulator has no plans to ban the asset class, instead the authority hopes to introduce a comprehensive regulatory framework for it that is industry-friendly but capable of dealing with the concerns to reduce the use of this asset class in criminal activities.