The Monetary Authority of Singapore (MAS) and the Deutsche Bundesbank have signed a Memorandum of Understanding (MoU) to collaborate on tokenised asset settlement and enhance cross-border payment efficiency, both institutions announced on 13 November 2025.
The agreement, unveiled during the Singapore FinTech Festival, outlines a joint effort to design and test new digital settlement mechanisms for transactions between Singapore and Germany. According to the Bundesbank, the cooperation seeks to reduce processing times, lower transaction costs and improve the interoperability of tokenised financial assets across jurisdictions.
Focus on interoperability and next-generation settlement
Under the MoU, both central banks will work on developing common standards for cross-border payments, foreign exchange flows and securities settlement using tokenised assets. Shared frameworks are expected to help financial institutions transact seamlessly across different digital asset platforms, reducing existing frictions in international markets.
The partnership also builds on MAS’ ongoing Project Guardian, a multi-year collaborative initiative involving global policymakers and industry players aimed at testing asset tokenisation, market liquidity innovation and new digital financial infrastructure.
MAS Deputy Managing Director (Markets and Development) Leong Sing Chiong said the agreement will help strengthen financial links between the two economies. “Through this new partnership with the Deutsche Bundesbank on digital asset settlement, we hope to enhance financial connectivity in ways that benefit individuals, corporates and financial market participants in both our economies,” he said.
Deutsche Bundesbank Executive Board member Burkhard Balz welcomed the cooperation, emphasising its importance for the future of financial systems. “The partnership with MAS reflects our shared commitment to advancing new financial infrastructures. Together, we aim to foster technological innovation and set new standards for efficiency and interoperability in international payments and securities transactions,” he said.
Strategic implications for Europe and Asia
For Germany, the initiative aligns with ongoing European work on digital settlement, including experiments related to the Eurosystem’s digital euro programme and tokenised asset pilots. For Singapore, it strengthens its role as a leading hub for fintech innovation.
Analysts say the agreement could pave the way for more integrated digital asset networks across Europe and Asia, setting a model for cross-border settlement involving tokenised securities, FX and payments.
The collaboration is expected to continue through technical working groups, joint prototypes and pilot testing phases. Both central banks highlighted that the MoU marks a strategic step toward building future-ready digital financial infrastructure.