Clifford Chance advised Singapore's first industry pilots' cross-currency transactions on tokenized deposits
Clifford Chance advised Singapore's first industry pilots' cross-currency transactions on tokenized deposits
The Monetary Authority of Singapore's Project Guardian, a collaborative endeavor with the financial industry that explores the possibilities of applications in asset tokenization. It includes deposit tokenization, and decentralized finance that has been successfully piloted by JP Morgan and SBI Digital Asset Holdings, with the assistance of the international law firm Clifford Chance.
Japanese yen and Singapore dollars were tokenized and used in a real-time forex transaction between JP Morgan and SBI.
This actual foreign exchange transaction was recorded thanks to the efforts of the team led by partner Lena Ng and associate Yaru Chia. The agreement between the parties included information about the execution of the transaction, the parties' interaction with the decentralized finance protocol and the parties' credentials that could be verified. In addition, the team consulted on Singapore law's regulatory treatment of tokenized liabilities and other novel challenges arising from such transactions.
Lena Ng stated, "We are honored to have assisted SBI Digital Asset Holdings and JP Morgan on this historic pilot transaction. Institutional decentralized finance protocols can provide efficiency to financial markets, as evidenced by the actual transaction conducted under this first pilot project, which tokenizes deposits and assets."
