Schroders collaborates with MAS to drive innovation in Singapore’s digital asset ecosystem
Asset manager to explore capabilities of a tokenised investment vehicle for Variable Capital Companies (VCCs)
Schroders Singapore today announced its participation in the Monetary Authority of Singapore’s (MAS) Project Guardian1. This ground-breaking initiative aims to develop a responsible and innovative digital asset ecosystem by supporting global efforts in testing the feasibility of tokenised assets while managing risks to financial stability and integrity.
Schroders will leverage its expertise and work together with global funds network Calastone to explore the capabilities of a tokenised investment vehicle2 (TIV) for variable capital companies (VCCs). This innovative vehicle should allow clients to improve the personalisation of their investment solutions, while the underlying blockchain technology will potentially simplify day-to-day operational processing through increased automation and synchronised data.
The collaboration between Schroders and Calastone will also explore asset ownership linked to blockchain technology that could improve the personalisation of investment products and provide more cost-efficient investment allocation for retail and institutional investors while simplifying day-to-day operational processing.
In its announcement today3, MAS shared the expansion of Project Guardian to include a diverse group of financial institutions, reaffirming their commitment to driving innovation in the digital asset landscape. To further contribute to the industry's understanding of digital assets' opportunities and risks, MAS and the expanded group of financial institutions have identified additional areas for collaboration since the announcements4 made in November last year.
Lily Choh, CEO, Schroders Singapore, commented:
“We are delighted to be part of MAS’ Project Guardian, working with Calastone to contribute to the advancement of the digital asset ecosystem in Singapore. Distributed Ledger Technology is an important evolution that has the potential to improve speed and transparency, achieve efficiencies, and allow personalisation of investment options in new and exciting ways.”
"As a regional innovation hub, we are driving this project from Singapore and look forward to collaborating with various industry players to bring this pioneering technology to market, ushering in an era of exciting possibilities.”
Marita McGinley, Head of Digital Assets Strategy, Schroders, commented:
"We are in a transformative era where distributed ledger technology (DLT) will redefine finance with a positive impact on asset management. At Schroders, we understand the vital role of tokenisation and digital assets in modern investment strategies.”
“Tokenisation brings forth two fundamental advantages: synchronised data and heightened automation. Moreover, it expands accessibility and enables customisation, providing investors with more options. Managed in a responsible way, we think this is good for clients and for the market.”
Adam Belding, Chief Technology Officer, Calastone, said: “Calastone has long pioneered the use of technology in asset management to reduce friction and create better outcomes for investors. We have been working on the use of DLT as an enabler for many years, and we are very excited to work with a visionary asset manager like Schroders to enable the genuine transformation to the investment industry.”
The TIV project reflects Schroders’ commitment in exploring a broad range of technologies to support the evolving digital assets landscape. Earlier in February, Schroders participated in the first-ever GBP Digital Bond issued by the European Investment Bank5, an important innovation for the development of digital asset solutions. In August 2022, the firm announced its strategic minority stake in Forteus6, an asset manager focused on blockchain and digital assets, to support its ongoing education and research in this sector and to develop investment solutions for the benefit of its clients.
1Project Guardian is MAS’ collaborative initiative with the financial industry that seeks to test the feasibility of applications in asset tokenisation and Decentralised Finance (DeFi) while managing risks to financial stability and integrity.
2Tokenised Investment Vehicle (TIV) offers the ability to wrap and issue traditional investment securities in an efficient, digital investment vehicle.
3MAS Proposes Framework for Digital Asset Networks
4First Industry Pilot for Digital Asset and Decentralised Finance Goes Live
5EIB issues £digital bond on hybrid blockchain with 3 major banks and Schroders – Finadium
###
For further information, please contact:
Hilary Espinosa
Penta Asia
Tel: +65 8814 4903
Email: hilary.espinosa@pentagroup.co
Clarence Chen
Schroder Investment Management (Singapore) Ltd
Tel: +65 6800 7397
Email: clarence.chen@schroders.com
About Schroders Plc
Founded in 1804, Schroders is one of Europe’s largest independent investment management firms by assets under management. As at 31 December 2022, assets under management were £737.5 billion (€831.3 billion; $887.2 billion). The founding family remain a core shareholder, holding approximately 44% of the firm’s shares. Schroders has continued to deliver strong financial results. It has a market capitalisation of circa £7 billion and employs over 6,100 people across 38 locations.
Schroders has benefited from the most diverse business model of any UK asset manager by geography, asset class and client type. Schroders offers innovative products and solutions across its five business areas of solutions; institutional; mutual funds; private assets & alternatives; and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, endowments and foundations. They also manage assets for end clients as part of their relationships with distributors, financial advisers and online platforms. Schroders’ Wealth Management offering reflects its strategic ambition to provide wealth management and financial planning services to clients across the wealth spectrum.
Schroders’ strategic aims are to grow their asset management business, build closer relationships with end clients and expand their private assets and alternatives business. Schroders’ purpose is to provide excellent investment performance to clients through active management. The business channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we deliver for Shareholders and other stakeholders.
Important information
This is prepared by Schroders for information and general circulation only, and the opinions expressed are subject to change without notice. It does not constitute an offer or solicitation to deal in units of any Schroders fund and does not have regard to the specific investment objectives, financial situation or particular needs of any specific person who may receive this.