ANZ Bank Joins Singapore’s Project Guardian for Tokenization

ANZ Bank in Australia is collaborating with the Monetary Authority of Singapore, Chainlink Labs, and ADDX to investigate tokenized assets and the interoperability of blockchain technologies.

As a member of Australia’s “Big Four” banks, ANZ Bank has made history by becoming the first Australian bank to participate in Project Guardian, an initiative by the Monetary Authority of Singapore that focuses on how physical assets can be digitized as tokens on blockchains, as detailed in a press release issued by ANZ.

This initiative enables ANZ to collaborate with Chainlink Labs (LINK) and ADDX to experiment with the trading of tokenized assets, including commercial paper, across private blockchain networks.

ANZ has implemented Chainlink’s cross-chain interoperability protocol to model transactions involving tokenized assets. This development came on the heels of insights gained from the Swift blockchain interoperability initiative that began in June.

Tokenization is the process of converting conventional assets, such as money market funds, into digital tokens that operate on blockchain platforms. This transformation makes it possible to trade physical assets more readily, akin to trading stocks or cryptocurrencies. 

ANZ’s objective is to assess whether these digital representations of tangible assets can be transferred more efficiently and securely among different blockchain networks. The bank anticipates that this advancement will enhance the flow of money and goods throughout the Asia-Pacific region.

Interoperability 

Tokenized assets frequently encounter challenges with interoperability, as disparate blockchains struggle to communicate effectively. This lack of interoperability presents a major hurdle to tokenization, often resulting in isolated networks that lack inherent communication capabilities.

ANZ intends to leverage its expertise in digital assets, including its Australian Dollar stablecoin, to assist clients in navigating the rapidly changing digital finance landscape.

As noted in the release, Project Guardian, which was initiated in 2022, aims to foster cooperation between regulators and the financial sector to bolster liquidity and efficiency in financial markets through the process of tokenization.