Crypto News Today: The Monetary Authority of Singapore Has Launched its DeFi Pilot Project

Stani Kulechov, the founder of Aave, commented that MAS;  also known as the Monetary Authority of Singapore, which is a decentralized finance pilot program; just executed “the first real-world use case for institutional-grade DeFi protocols.” On Wednesday, November 3rd, 2022, institutions like J.P. Morgan, DBS Bank and SBI Digital Asset Holdings explored using the Aave Protocol on Polygon in order to complete foreign exchange and government bond transactions on the Ethereum network. As a test to explore more on this agenda, the said banks made an exchange of the tokenized versions of Singapore government securities bonds for Japanese government bonds. Apart from the bonds, the experiment also included the exchange of Japanese Yen for Singapore Dollars!

Back in May 2022, Project Guardian announced the introduction of MAS. Since then MAS has been busy engaging in the financial industry in order to identify key areas that can be helped with its collaboration. The MAS programs also aim to explore technology standards that can support interoperability across the digital asset ecosystems along with the potential to facilitate cross-currency transactions of tokenized assets. However, to execute this, the project first need to establish a common identity and access framework that is supported by trust anchors along with issuing verifiable credentials to entities that wish to participate in the DeFi protocols.