- The Monetary Authority of Singapore (MAS) has released a whitepaper in collaboration with major financial and crypto firms, outlining the Interlinked Network Model (INM) for digital asset interoperability.
- The INM aims to address liquidity fragmentation in digital assets by enabling cross-network transactions, a part of MAS’s broader Project Guardian initiative.
Charting New Paths in Digital Asset Interoperability
The Monetary Authority of Singapore (MAS), in a landmark collaboration with financial giants and crypto innovators, has unveiled a whitepaper focused on enhancing interoperability in the digital asset ecosystem. This initiative, part of Project Guardian, brings together significant entities like JPMorgan’s Onyx unit, HSBC, Standard Chartered, Swift, Chainlink, LayerZero, and Ava Labs, aiming to bridge the gap in cross-network transactions of digital assets.
The Interlinked Network Model (INM)
The whitepaper, aptly titled “Interlinking Networks”, introduces the concept of the Interlinked Network Model (INM). This model proposes a common framework for the seamless exchange of digital assets across independent financial networks. The INM is designed to facilitate transactions between financial institutions without the necessity of being on the same blockchain network.
This initiative targets the issue of fragmentation in the digital asset sector, where financial institutions develop individual digital asset platforms, leading to potential liquidity fragmentation. By interlinking these networks, the INM ensures a fluid movement of digital assets across various platforms.
The document delves into potential methodologies for bridging independent networks, enabling cross-network messaging and asset transfers. It also considers critical factors like governance, security, scalability, and other essential elements for a robust cross-chain infrastructure.
Project Guardian: Pioneering Pilots in Digital Assets
Under the Project Guardian umbrella, MAS has launched five new pilot projects, focusing on areas like bilateral digital trades, treasury solutions, cross-border payments, tokenized funds, and asset servicing. These projects, involving major partners like Fidelity, Citi, Ant Group, BNY Mellon, Franklin Templeton, JPMorgan, and Apollo, are set to explore the vast potential of asset tokenization.
Additionally, MAS introduced the Global Layer One initiative, aiming to design an open infrastructure for tokenized assets and applications. This effort, involving collaboration with JPMorgan and BNY Mellon, underscores Singapore’s commitment to positioning itself as a hub for innovation in the blockchain and digital asset space.
In conclusion, the release of the INM whitepaper under Project Guardian marks a significant step by Singapore in addressing the challenges of interoperability and liquidity fragmentation in the digital asset space. This collaborative effort among traditional financial institutions and crypto firms sets the stage for a more interconnected and efficient digital asset ecosystem.