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Top Crypto News Today: First Decentralised Finance Pilot Project launched by the Monetary Authority of Singapore

Top Crypto News Today: The Monetary Authority of Singapore Has Launched its DeFi Pilot Project

With the rise in crypto adoption across the globe, it was expected that institutions would include themselves somewhere down the line. The massive boost to the crypto space, which came to being after Satoshi Nakamoto introduced Bitcoin to the world back in 2009, was revolutionary. Various countries are already exploring CBDCs and looking into ways to regulate the new asset class! 

One of the main agendas of the G-20 Presidency, hosted by India this time, is to look into a cumulative way of regulating the crypto asset space.

Stani Kulechov, the founder of Aave, commented that MAS;  also known as the Monetary Authority of Singapore, which is a decentralized finance pilot program; just executed “the first real-world use case for institutional-grade DeFi protocols.” On Wednesday, November 3rd, 2022, institutions like J.P. Morgan, DBS Bank and SBI Digital Asset Holdings explored using the Aave Protocol on Polygon in order to complete foreign exchange and government bond transactions on the Ethereum network. As a test to explore more on this agenda, the said banks made an exchange of the tokenized versions of Singapore government securities bonds for Japanese government bonds. Apart from the bonds, the experiment also included the exchange of Japanese Yen for Singapore Dollars!

Based on the experiments that are being done,  Stani Kulechov said to Decrypt, “We look forward to welcoming more innovation that leverages composable DeFi protocols to provide access to many underserved markets and enable a more inclusive system.

To this, the founder of Polygon (MATIC) took to Twitter to express his optimism.

Back in May 2022, Project Guardian announced the introduction of MAS. Since then MAS has been busy engaging in the financial industry in order to identify key areas that can be helped with its collaboration. Some of the agendas that are being targetted ever since include:

The Head of capital markets at Celent, Monica Summerville commented, “DeFi ranked as the top feature after custody and execution when considering which digital asset custodian to work with. However, echoing some of the findings of this pilot, our study also found that interoperability ranked as a top three concern around digital representations of cash on the blockchain.

Source: Decrypt

Read more: Top Crypto New Today

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