The Investment Association (IA) and Investment Management Association of Singapore (IMAS) have joined an international initiative to explore the potential of blockchain and asset tokenisation.

Project Guardian, which is led by the Monetary Authority of Singapore (MAS), aims to drive international collaboration and innovation in digital assets.

The IA and IMAS are the first domestic trade associations and first asset management-specific bodies to join the project, in what the IA described as a “major step” to drive innovation in the investment management industry.

Project Guardian is an international, collaborative initiative between policymakers and the finance industry, seeking to enhance the liquidity and efficiency of financial markets through tokenisation.

It is aiming to establish industry frameworks and standards on asset tokenisation, foster the use of tokenisation across different asset classes, and develop a sustainable digital asset ecosystem.

The project hopes that this in turn will have the potential to improve financial inclusion and efficiency by making tokenised assets available to a broader audience.

Project Guardian also includes several regulators, including the UK’s Financial Conduct Authority (FCA).

Through fostering two-way engagement, the IA and IMAS are looking to ensure that investor protection, commercial viability, and responsible innovation remain central to the development of tokenised markets.

"Tokenisation and digital markets are a huge focus area with significant growth potential for the UK investment management industry,” stated IA CEO, Chris Cummings.

“Blockchain and tokenised assets are not constrained by borders, and the IA is delighted to have been invited to join Project Guardian to drive international coordination as we design the future of the global financial system.

“We have long advocated for fund modernisation and innovation through our Investment Fund 3.0 agenda, a vision for the tokenisation of a UK funds industry whose full value chain is operated on Distributed Ledger Technology.

“We look forward to working with MAS, IMAS and all other Project Guardian participants to share market experiences and drive forward innovative regulatory developments for the benefits of investors across the globe.”

IMAS CEO, Carmen Wee, added: “IMAS is proud to be part of Project Guardian. Tokenisation offers real potential to enhance cross-border access and efficiency while reducing costs, making investments accessible.

“A trusted and inclusive digital economy must be built on connectivity and cooperation. IMAS is committed to working with our partners to build a resilient and interoperable ecosystem, one where investors and managers better understand the opportunities and risks of tokenised assets.

“We look forward to working closely with MAS, FCA and the IA in this exciting initiative.”

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