Ratings agency Moody’s is joining Project Guardian, the Monetary Authority of Singapore (MAS) initiative that explores asset tokenization in collaboration with regulators in other jurisdictions and the private sector. Moody’s and S&P Global Ratings are among the 24 participating companies.
It plans to conduct risk analysis on various tokenized assets that are part of the project, but particularly fixed income. So this might include tokenized bonds, digital funds, stablecoins and tokenized deposits.
Moody’s says its aim is to enhance transparency, reduce systemic risk and promote the growth of the tokenization industry.
“Project Guardian is a testament to the power of transparency in the financial industry and as we join other leaders in this initiative, we are excited about the potential of tokenization to transform the financial landscape,” said Fabian Astic, Managing Director and Global Head, Digital Economy, Moody’s Ratings.
At least eight Project Guardian participants are exploring fixed income, including Citi, DBS, JP Morgan, SBI, SGX, Standard Chartered, T Rowe Price and UBS.
Moody’s already has a fair bit of experience in rating tokenized issuances. For example, it has rated multiple digital bonds issued via the SIX Digital Exchange (SDX). It also rated the first digital fund from Libeara, the fund tokenization offering founded by Standard Chartered’s SC Ventures.
