The rating agency will provide its perspective on risk mitigation in tokenized fixed income transactions.
S&P Global Ratings is the latest institution to join the Monetary Authority of Singapore’s (MAS) massive Project Guardian. The two-year-old project examines the role asset tokenization can play in the liquidity and efficiency of financial markets.
Project Guardian seeks to establish standards and policy guidelines and to develop a commercially oriented digital asset ecosystem. S&P Global will participate in fixed-income pilot projects. S&P Digital Assets analytical lead Andrew O'Neill said in a statement:
Within the fixed-income pilots, institutions are conducting foreign exchange and bond transactions against liquidity pools of tokenized bonds and currencies. They are also carrying out repurchase agreements with digital bonds an developing a listing framework for debt securities and an initial token offering for digital tokens offered on the Singapore Exchange.
