Moody's Joins Singapore's Project Guardian to Analyze Risks in Tokenized Assets

Credit rating agency Moody's has announced its participation in Project Guardian, a collaborative initiative led by the Monetary Authority of Singapore (MAS), to explore the potential of asset tokenization in financial markets.

Launched in 2022, Project Guardian brings together public and private sector players to develop a framework for issuing and trading digital tokens representing traditional assets like bonds and securities.

Moody's involvement specifically focuses on the fixed income workstream of Project Guardian. The company will leverage its expertise to provide risk analysis for tokenized fixed income products. This analysis could encompass a wide range of assets, including traditional fixed-income securities, fund units, stablecoins, and even tokenized versions of bank deposits, Moody's said in the announcement.

"Our participation in Project Guardian reflects our commitment to innovation, transparency, and risk analysis in financial markets," said Wendy Cheong, managing director and regional head of Asia-Pacific for Moody's Ratings. Moody's independent risk assessments are expected to play a crucial role in enhancing market transparency, mitigating potential systemic risks, and fostering the growth of the tokenization industry.

This move aligns with Moody's broader commitment to the digital transformation of the financial sector. "Project Guardian is a testament to the power of transparency in the financial industry," said Fabian Astic, managing director and global head, digital economy, Moody's Ratings. "We are excited about the potential of tokenization to transform the financial landscape, and we're committed to paving the way for these advancements and contributing to a more efficient and transparent market."