Collaboration on Cross-Border Settlements
In a noteworthy development during Singapore’s annual FinTech Festival, the Monetary Authority of Singapore (MAS) and Germany’s Deutsche Bundesbank have reached an agreement to collaborate on cross-border settlements involving digital assets. This partnership aims to enhance efficiency in international financial transactions, a growing priority in today’s globalized economy.
Key Figures and Strategic Goals
The memorandum of understanding was officially signed by key figures, including MAS’s Deputy Managing Director for Markets and Development, Leong Sing Chiong, and members of the Deutsche Bundesbank, including Burkhard Balz and Alexandra Hachmeister, who oversees the Digital Euro division. This strategic collaboration intends to facilitate the development of advanced settlement technologies designed to streamline and reduce the costs of cross-border transactions between Singapore and Germany.
Promoting Universal Standards
Central to this agreement is the intention to promote universally accepted standards governing cross-border payments, currency exchanges, and securities liquidity. These standards aim to support the management of tokenized real-world assets, enhancing the compatibility between diverse cryptocurrency platforms and ensuring smoother financial operations.
Statements from Leaders
Leong Sing Chiong expressed optimism about this partnership, suggesting it would strengthen the financial linkages between the two nations, ultimately benefiting individual traders, institutions, and the broader market landscape. He articulated a vision for this cooperation to serve as a cornerstone for developing future digital financial infrastructures.
Echoing this sentiment, Burkhard Balz emphasized that the collaboration is designed not just to innovate technically but also to set new regulatory benchmarks for international payments and securities trading—an essential aspect for modern financial ecosystems.
Context and Future Initiatives
This initiative is set against the backdrop of Project Guardian, an existing MAS-led effort launched in 2022 engaging over 40 financial entities and regulators to expedite the tokenization of assets and nurture a digital-asset ecosystem within Singapore. Previously, a similar agreement was struck between the U.K. and Singapore in July 2025, aimed at enhancing cooperation in areas like digital finance and innovative capital market practices.
