The respective trade associations for the UK and Singapore’s asset management industries have signed up to Project Guardian, a cross-border initiative led by the Monetary Authority of Singapore and designed to promote use-cases for blockchain.

The UK’s Investment Association (IA) and the Investment Management Association of Singapore (IMAS) are the first domestic trade assocations and asset management-specific bodies to join the initiative, a move which is in order to explore the potential of blockchain and asset tokenisation.

In addition to a number of banks and asset managers, the project also counts regulators such as the Financial Conduct Authority as members. 

The announcement adds further momentum to the development of DLT within the investment industry. Tokenisation and digital assets have the potential to transform the market via operational benefits – such as the removal of various intermediaries, and a more accessible market to a broader range of investors.

However, these benefits are dependent on the development of more use cases that can operate at scale as well as established industry frameworks and standards. 

“Tokenisation and digital markets are a huge focus area with significant growth potential for the UK investment management industry,” said IA chief executive Chris Cummings. “Blockchain and tokenised assets are not constrained by borders, and the Investment Association is delighted to have been invited to join Project Guardian to drive international coordination as we design the future of the global financial system.”

“Tokenisation offers real potential to enhance cross-border access and efficiency while reducing costs, making investments accessible,” added Carmen Wee, CEO of IMAS. “A trusted and inclusive digital economy must be built on connectivity and cooperation. IMAS is committed to working with our partners to build a resilient and interoperable ecosystem, one where investors and managers better understand the opportunities and risks of tokenised assets.”