Singapore’s MAS indicated it will provide a grant fund to support real trials and commercialization of individual web3 projects.
The Monetary Authority of Singapore (MAS) announced that it has committed approximately $112 million, equivalent to 150 million Singapore Dollars, over three years under the renewed Financial Sector Technology and Innovation (FSTI 3.0) Program to support FinTech solutions, including Web3 projects.
According to a statement on 7th August, MAS stated that this fund aims to accelerate innovation by supporting cutting-edge projects under various categories, including the Innovation Acceleration route. The Innovation Acceleration route encompasses Web3 projects.
The statement indicated that a grant fund would be provided to support real trials and commercialization of individual web3 projects. Additionally, it was added:
“MAS recognises the importance of partnering with the industry to support innovative FinTech solutions arising from emerging technologies such as Web 3.0.”
While others, like corporate venture capital (CVC) units, enjoy financing of up to 2 million Singapore Dollars, environmental, social, and governance (ESG) FinTech solutions will receive up to 500,000 Singapore Dollars.
The regulator also noted that it will continue to support the adoption of artificial intelligence and data analytics (AIDA) and promote the adoption of regulatory technology (RegTech). The statement included the following:
“MAS will focus on promoting AIDA adoption in smaller financial firms and supporting the needs of less digitally mature firms looking to acquire RegTech solutions.”
Regarding this matter, MAS’s Managing Director, Ravi Menon, stated that since the inception of the FSTI program in 2015, the Financial Sector Development Fund has awarded various initiatives a total of 340 million dollars, leading to a significant surge in the fintech sector.
Menon indicated that the FSTI program led to the growth of noteworthy projects, including a major payment initiative that allows cross-border payments with Thailand.
MAS’s move seems to be a different approach from other significant Singaporean financial institutions like Temasek. In July, Temasek’s Chief Investment Officer, Rohit Sipahimalani, exhibited a cautious stance towards investing in crypto companies due to the current volatile regulatory environment, as evidenced by losses from their investment in the FTX cryptocurrency exchange.
