MAS, Bundesbank agree to deepen cooperation on tokenised payments

It aims to create new settlement solutions that reduce the costs and processing times of cross-border payments.

The Monetary Authority of Singapore (MAS) and the Deutsche Bundesbank signed a memorandum of understanding (MoU) in Singapore to deepen cooperation on cross-border digital asset settlement.

The agreement aims to enhance the efficiency of financial transactions, particularly between Singapore and Germany, by developing interoperable frameworks for settling tokenised assets.

The MoU sets out two key objectives: first, to create new settlement solutions that reduce the costs and processing times of cross-border payments; and second, to promote common technical and policy standards for cross-border payments, foreign exchange, and securities transactions involving digital assets.

The move is part of a broader push by both regulators to future-proof cross-border financial infrastructure.

In public remarks, MAS stated that the initiative aims to boost financial connectivity for individuals, companies, and market players and to lay the groundwork for future digital infrastructure.

The Bundesbank emphasised a shared commitment to modernising cross-border payments and to developing interoperable systems that support emerging asset classes and transaction models.