MAS Proposes Framework for Open Digital Asset Networks in Finance

MAS proposes framework for digital asset networks

The Monetary Authority of Singapore (MAS) published on 26 June 2023 a report proposing a framework for designing open, interoperable networks for digital assets — that is, tokenised real-economy and financial assets. The report, "Enabling Open & Interoperable Networks", was jointly developed with subject matter experts at the Bank for International Settlements' (BIS) Committee on Payments and Market Infrastructure (CPMI), with contributions from participating financial institutions.

In the area of asset and wealth management, the pilots referenced in the report range from digital structured products to tokenised investment vehicles.

HSBC, Marketnode and UOB successfully concluded a technical pilot on the issuance and distribution of a digitally native structured product. The pilot demonstrated the potential for lower issuance and servicing costs, reduced issuance and settlement times, deeper customisation, and broader distribution for participants within the structured product chain.

A further pilot will focus on the issuance of multi-currency and debt/equity linked structured notes under HSBC's existing issuance programme, tokenised by Marketnode's multi-asset issuance platform, and distributed by UOB for its wealth management activities.