Singapore (Common Wealth) _ The Monetary Authority of Singapore (MAS) announced a three-year commitment of 150 million Singapore Dollars (about $112 million) under the revised Financial Sector Technology and Innovation (FSTI 3.0) Scheme to encourage FinTech solutions, including Web3 initiatives.
The MAS stated in an Aug. 7 statement that the fund seeks to accelerate innovation by supporting cutting-edge technology projects across multiple tracks, including the Enhanced Centre of Excellence track, the Environmental, Social, and Governance fintech track, and the Innovation Acceleration track. Web3 projects are covered by the innovation acceleration track.
Individual web3 projects would receive grant cash to facilitate actual trial and commercialization, according to the statement. It explained that MAS understands the value of collaborating with industry to develop innovative FinTech solutions resulting from emerging technologies such as Web 3.0.
Others, such as corporate venture capital (CVC) organizations, would receive up to 2 million Singapore Dollars in funding, while environmental, social, and governance (ESG) FinTech solutions would receive up to 500,000 Singapore Dollars.
The regulator also announced that it would continue to encourage the use of artificial intelligence and data analytics (AIDA) as well as regulatory technology (RegTech). It further emphasized, MAS would prioritize boosting AIDA adoption in smaller financial institutions and assisting less digitally advanced firms seeking to acquire RegTech solutions.
Ravi Menon, MAS’s managing director, commented on the development, saying that the Financial Sector Development Fund has awarded $340 million to various initiatives since the FSTI program’s commencement in 2015, resulting in a considerable increase in the fintech sector. Menon went on to say that the FSTI program has resulted in the expansion of important projects, such as a large payment effort that enabled cross-border payment with Thailand.
This action by MAS is notable since it appears to be a departure from other key Singaporean financial bodies such as the national fund, Temasek. Temasek’s chief investment officer, Rohit Sipahimalani, urged caution in investing in crypto firms in July, citing the current uncertain regulatory climate, as seen by losses from its investment in crypto exchange FTX.
