The Monetary Authority of Singapore (MAS) has released a revolutionary white paper, titled “Interconnected Networks”, focused on interoperability for digital assets. This publication was developed in collaboration with giants in the financial sector and blockchain technology, including JPMorgan’s Onyx unit, HSBC, Standard Chartered, Swift, Chainlink, LayerZero and Ava Laboratories.
The document addresses the critical need for interoperability in the growing world of tokenized assets and digital markets. He underlines: “To ensure that the proliferation of tokenized assets and market places does not come at the expense of liquidity, there needs to be interoperability between financial networks and digital assets to be exchanged seamlessly.” This statement highlights the importance of fluid integration between different digital platforms to maintain market efficiency.
The main highlight of the white paper is the proposed Interconnected Network Model (INM), which aims to provide a framework for the efficient exchange of digital assets between independent networks. This innovation would allow financial institutions to conduct transactions without the restriction of operating on the same network, promoting greater fluidity in digital asset exchanges.
Additionally, INM seeks to address the issue of fragmentation, a significant challenge as financial institutions develop their own digital asset platforms and ecosystems. By connecting these diverse networks, INM has the potential to prevent liquidity fragmentation and promote a more cohesive and efficient digital asset ecosystem.
The white paper also details potential methods for connecting independent networks, facilitating communication and asset transfer between them. This effort encompasses critical design considerations, including governance, security, scalability, and other elements essential to successful interoperability.
The launch of INM is part of a series of five new pilot projects announced by MAS under the Project Guardian initiative, which explores asset tokenization. These pilot projects cover a variety of areas such as two-way digital trade, treasury solutions, cross-border payments, tokenized funds and asset maintenance, with the participation of key partners such as Fidelity, Citi, Ant Group, BNY Mellon, Franklin Templeton, JPMorgan and Apollo.
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Source: https://portalcripto.com.br/cingapura-e-gigantes-financeiros-revelam-inovacao-cross-chain-em-criptomoedas/
