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Global financial institutions propel blockchain innovation under Project Guardian

Banks aim to integrate blockchain into mainstream finance for digital assets, emphasising institutional-grade standards, interoperability, and collaboration

February 06, 2024 | Genivi Factao

UBS, SBI, DBS, Citigroup and other major banks are reshaping finance through various innovations, including the world’s first cross-border digital bond repurchase transaction (repo), and a foreign exchange (FX) trading application under the Monetary Authority of Singapore’s (MAS) Project Guardian.

World’s first cross-border digital bond repo

Under Project Guardian, UBS Group, SBI Digital Asset Holdings (SBI DAH), and DBS has completed its first cross-border repo transaction using a digital bond issued on a public blockchain, demonstrating blockchain’s efficiency in real-time cross-border distribution and settlement spanning Japan, Singapore, and Switzerland.

The groundbreaking transaction took place on 15 November 2023, and involved tokenised Japanese Yen and a JPY-denominated digital bond. Additionally, UBS Asset Management and SBI Digital Markets (SBI DM) concluded a technical pilot for tokenised fund issuance on the Ethereum network as part of Project Guardian.

The exercise yielded tangible results; aside from 24/7 settlement, it also showed efficiencies in operations and capital, compliance, and security. Mike Dargan, group chief operations and technology officer at UBS, emphasised the feasibility of automated and instantly-settled transactions across multiple jurisdictions. 

Mike Dargan, Group Chief Operations and Technology Officer at UBS

Fernando Luis Vázquez Cao, CEO of SBI DAH, showcased robust partnerships and their institutional-grade digital ...

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Keywords:Blockchain Innovation, Project Guardian, Digital Bond Repurchase Transaction, Foreign Exchange (fx) Trading Application, Cross-border Digital Bond Repo, Japanese Yen, Hub And Spoke Architecture, Digital Asset Ecosystem, Blockchain Application, Private Permissioned Instance, Blockchain Transactions, Access And Efficiency, Regulatory Frameworks