Bank of Singapore bets on tokenization and will explore DeFi together with JP Morgan

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Bank of Singapore bets on tokenization and will
explore DeFi together with JP Morgan
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Bank of Singapore bets on tokenization

• The Central Bank of Singapore will explore asset
  tokenization and DeFi together with JP Morgan,
  DBS Bank and Marketnode.
• In the pilot, bonds and tokenized deposits will
  be added to a regulated liquidity pool.
• The announcement is timed to coincide with
  remarks made by Jamie Dimon, CEO of JP Morgan,
  who emphasised that investors need to get ready
  for the upcoming hurricane.

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Singapore Bank, Defi and JP Morgan

• According to MAS, tokenization is the process of
  using a smart contract on a blockchain to
  digitally represent assets or other objects of
  value.
• This enables the fractionalization and
  peer-to-peer trade of real economy and financial
  assets through the Internet.
• When employed in the context of financial
  services, these smart contracts allow for
  decentralised financing (DeFi Development
  Company).

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Singapore Bank, Defi and JP Morgan

• In DeFi, financial transactions, such as loans
  and trading activities, can be carried out on a
  blockchain, without the need for intermediaries.
• It could increase financial services'
  effectiveness, accessibility, and affordability.
  This will "boost financial market liquidity and
  enhance economic inclusion," according to MAS.
• With JP Morgan, the Singapore Central Bank will
  investigate asset tokenization and DeFi.

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Japan and the Web3

• Japan's Prime Minister Opens To Cryptocurrency
  Tax Reform To Boost Web3 Growth.
• As Tim Alper reports in Cryptonews, Fumio Kishida
  told Parliament that Web3 could boost economic
  growth, suggesting he may be ready to push for
  business-friendly legal reform.
• Earlier in May, Kishida also spoke to British
  investors about Web3, the Metaverse, blockchain,
  and NFTs.

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Japan and the Web3

• Japan recognizes stablecoins as digital money.
  The Parliament of Japan has approved a bill that
  recognizes stablecoins as digital money.
• In addition, it will allow its holders and
  investors the possibility of exchanging them for
  their nominal value.
• The Japan Financial Services Agency will legalize
  stablecoins issued by authorized entities, such
  as licensed banks or duly registered finance
  companies. The new law will take effect in one
  year.