Germany’s central bank, Deutsche Bundesbank, which has a reputation as one of the most conservative and independent central banks in the world, has become a member of the Project Guardian initiative organized by the Monetary Authority of Singapore (MAS).

The cooperation agreement between MAS and Deutsche Bundesbank provides for testing the capabilities of cross-compatible blockchain infrastructure and includes the organization of cross-border circulation of tokenized assets and digital funds, as well as discussion of digital asset interoperability standards and measures to facilitate the development of Project Guardian.

The Deutsche Bundesbank is part of the European Union’s single financial system, along with the European Central Bank (ECB) and the other national central banks of the Eurozone. The German Central Bank has a significant influence on the financial system of the Eurozone, and its practical models are used by many banks as an example of successful monetary policy.

Project Guardian brings together key players in the global finance industry and aims to organize efficient cross-border circulation of tokenized assets. Deutsche Bundesbank intends to use Project Guardian resources to provide a reasoned answer to the question of how asset tokenization and digital funds can be used in the financial sector.

Earlier, the American financial conglomerate Citigroup announced the launch of an application that uses blockchain and smart contracts to support bilateral spot foreign exchange transactions. The application was developed specifically for the Project Guardian initiative.