The FSA (Financial Services Authority) of Japan and MAS (Monetary Authority of Singapore) are launching Project Guardian to explore how digital technologies can be used to create new financial products and services.
The project is committed to conducting pilot experiments that will help to shape the future of finance, while also ensuring that the financial system remains stable and secure.
The financial industry is already taking advantage of Project Guardian, with pilot projects underway in fixed-income, foreign exchange, and asset and wealth management.
Project Guardian is bringing together industry practitioners and policymakers to build a deeper understanding of digital asset networks by exploring their use cases across different asset classes.
MAS Deputy Managing Director Leong Sing Chiong welcomed the FSA’s participation in Project Guardian, calling it a “key milestone” in the development of a responsible digital asset ecosystem.
The project’s main goals are to gather insightful information from industry pilots, evaluate the long-term effects, and guarantee the safe growth of this rapidly evolving industry.
One of the most important aspects of Project Guardian is to define a governance model or accountability framework for DeFi.
A government study has recommended that Hong Kong should follow the lead of Japan and Singapore in embracing web3 technologies and cryptocurrencies.
The study warned that Hong Kong is falling behind its East Asian and Gulf counterparts in terms of web3 progress and that it needs to learn from the experiences of early adopters to catch up.
The partnership between Japan and Singapore is a sign of the growing acceptance of web3 technologies and cryptocurrencies, and it could help to legitimize the space and attract more investment.