Odaily News, the Financial Services Agency (FSA) of Japan has announced a partnership with the Monetary Authority of Singapore (MAS) to jointly regulate and pilot test the "Project Guardian" digital asset initiative in Singapore. At this stage, the FSA's participation will be limited to an observer role. The project aims to test the feasibility of digital technology applications such as asset tokenization while managing risks to financial stability and integrity. The current industry pilot includes fixed income, forex, as well as asset and wealth management. Project Guardian was established by MAS in May 2022 to test the feasibility of asset tokenization and DeFi applications in accordance with appropriate regulations. The project focuses on four areas: open and interoperable networks, trust anchors, asset tokenization, and institutional-grade DeFi protocols. In one project under the initiative, DBS Bank, JPMorgan, and SBI Digital Asset Holdings conducted forex and government bond transactions on a liquidity pool consisting of tokenized Singapore government bonds, Japanese government bonds, Japanese yen (JPY), and Singapore dollar (SGD) (Cointelegraph). According to previous reports, MAS has proposed an open and interoperable network framework designed for digital assets. The network was developed in collaboration with experts from the Bank for International Settlements (BIS) Payments and Market Infrastructures Committee (CPMI). Additionally, MAS announced the expansion of Project Guardian to test the potential of asset tokenization in more financial asset categories. To support this work, MAS has established the Project Guardian Industry Group consisting of 11 financial institutions, which will lead the pilot testing in asset and wealth management, fixed income, and forex industries.