Japan’s Financial Services Authority (FSA) has announced its participation in the Monetary Authority of Singapore’s (MAS) “Project Guardian” initiative. This collaborative project, which was established by MAS in May 2022, aims to explore the feasibility of applying digital technologies to various asset classes while ensuring financial stability and integrity.

Under the terms of the cooperation framework, FSA will join Project Guardian as an observer, drawing on its experience and knowledge to contribute to the objectives of the project. The initiative focuses on conducting pilot experiments, including asset tokenization, in sectors such as fixed income, foreign exchange, and asset and wealth management.

Mr. Leong Sing Chiong, Deputy Managing Director of MAS, expressed his enthusiasm for the FSA’s participation and emphasized the importance of public-private collaboration in fostering a responsible and innovative digital asset ecosystem. He welcomed the opportunity for further cooperation with the FSA to support global efforts in this area.

Mr. Mamoru Yanase, Deputy Director General of FSA’s Office of Strategy Development and Management, expressed his delight at joining Project Guardian. He recognized the growing complexity of the decentralized finance ecosystem and the need to address emerging risks. Mr. Yanase also recognized the potential of blockchain technology, which includes web3, as a powerful driver of innovation. He expressed his enthusiasm to collaborate with the MAS, traditional financial institutions and fintech companies to improve knowledge in this rapidly evolving field.

FSA’s participation in Project Guardian is a significant milestone, highlighting international cooperation and commitment to exploring the potential of digital assets. As governments and financial institutions around the world recognize the transformative power of blockchain and digital technologies, initiatives like Project Guardian are critical to developing robust frameworks and fostering innovation in the digital asset space.

According to MAS, Japan’s Financial Services Authority (FSA) is the first foreign regulator to join the “Guardian Project.” MAS stated: “MAS is also pleased to welcome the Japan Financial Services Agency (JFSA) as the first foreign financial regulator to join Project Guardian. This paves the way for MAS and JFSA to collaborate on asset innovation. technologies and best practices for asset tokenization, while protecting against risks to financial stability and integrity.”