The German Central Bank (Deutsche Bundesbank) has joined Project Guardian, a Singapore-led initiative aimed at reforming global capital markets through the tokenization of assets.
The Monetary Authority of Singapore (MAS) launched Project Guardian in 2022 to unite financial heavyweights and policymakers worldwide. The initiative aims to open new liquidity routes and set standards for tokenized assets.
The Bundesbank, one of Europe’s most important central banks, is participating in Project Guardian’s pilot projects. MAS designed these to promote cross-border digital assets and a cohesive global financial ecosystem.
Burkhard Balz, Member of the Bundesbank Executive Board, emphasized the project’s alignment with the European focus on distributed ledger technology (DLT) and blockchain, noting that:
“MAS works intensively on topics that we also research in Europe, such as the role of DLT and blockchain in the modern financial world.”
By joining Project Guardian’s policy group, the central bank aims to promote cross-border cooperation and stimulate discussions on digital asset standardization, helping it shape guidelines for regulatory clarity.
The German central bank plans to test an interoperable blockchain platform for tokenized and digital funds, which MAS considers essential for seamless asset management in financial systems.
Project Guardian’s objectives include building industry frameworks and governance models for tokenized assets, prioritizing commercially viable digital assets, while keeping regulatory safeguards in focus.
The Bundesbank’s involvement highlights the growing role of central banks in developing a more interconnected, symbolic financial system. Many observers see this partnership as an important step that could influence Europe’s approach to digital finance and encourage other central banks to undertake similar initiatives.
Project Guardian has brought together major global financial institutions and industry groups to advance asset tokenization and DeFi standards.
Key players include DBS Bank, JP Morgan and SBI Digital Asset Holdings, which have executed
involving tokenized deposits. Together with Deutsche Bank, the International Capital Market Association (ICMA) and regulators from Great Britain, Switzerland, France and Japan.
The project aims to set industry standards, promote cross-border collaboration and build a sustainable digital asset ecosystem.