SBI Digital Markets (SBIDM) is actively building an end-to-end framework for the primary and secondary market distribution of tokenised securities by connecting regulated digital asset exchanges across multiple jurisdictions. Winston Quek, chief executive officer of SBI Digital Markets, says: “From origination, tokenisation, distribution, digital custody, listing on digital asset exchanges and building secondary trading - we have put in place workflows for efficient cross-border distribution networks whilst allowing for dual issuances in traditional and tokenised formats. We have adopted open and interoperable architecture in both operational structuring and tech engineering to allow institutional investors at various stages of digital transformation to join our journey and unlock efficiencies through blockchain technology.” As part of the Fixed Income pilot, SBIDM has set up a regulated structure for the securities to be issued in both traditional and tokenised formats to cater to all investors. To facilitate cross-border secondary market liquidity, SBIDM has connected regulated digital asset exchanges across multiple jurisdictions with a blockchain-agnostic technology and governance framework. SBIDM will be launching the framework with the global secondary market in the next two months, with the first product being a structured note backed by luxury wines followed by intellectual property and commodities. Under the Asset and Wealth Management pilot, SBIDM built on the momentum of its 2023 Project Guardian technical pilot with UBS Asset Management. This year’s pilot sees the potential commercial application of a UBS tokenised fund with a Variable Capital Company (VCC) structure, with smart contract-based automation of fund subscription and redemption workflows. For cross-chain communication with the tokenised fund contract, SBI Digital Markets has created a digital transfer agent smart contract via Chainlink’s interoperability protocol, demonstrating the feasibility of using smart contracts to streamline fund operations across different blockchain networks and financial systems.

The  Monetary Authority of Singapore is also joining the tokenisation gold rush, fostering an industry framework for tokenised asset implementation

The central banks has joined with Citi, HSBC, Schroders, Standard Chartered and UOB to form the Guardian Wholesale Network industry group, with the intent of establishing a multi-member network to commercialise their respective asset tokenisation trials and scale usage.

Leong Sing Chiong, deputy managing director of MAS, comments: “MAS has seen strong interest in asset tokenisation in recent years, notably in fixed income, FX, and asset management. We are encouraged by the keen participation from financial institutions and fellow policymakers to co-create industry standards and risk management frameworks to facilitate commercial deployment of tokenised capital markets products, and scale tokenised markets on an industry wide basis.”