- The Monetary Authority of Singapore (MAS) will invest approximately $112 million in financial technological innovation, including Web3 solutions.
- In addition, MAS will hold open calls for projects to apply for grant funding to support actual trial and commercialization.
- The initiative will assist corporate venture capital (CVC) entities by providing grant funding that will cover up to 50% of qualifying expenses.
On Monday, the Monetary Authority of Singapore (MAS) announced three years of funding for the Financial Sector Technology and Innovation Scheme (FSTI). Its stated goal is to provide funding for projects on the “cutting edge” of finance.
The Third Iteration of Singapore’s FSTI
In its statement, the MAS also explicitly mentions “Web 3.0,” a term used to describe the internet’s next iteration. Its definition typically includes a decentralized web, cryptocurrencies, data sovereignty, and platform interoperability. In essence, a digital world that is not dominated by a few tech companies.
The announcement also confirms that MAS will hold open project calls. Allowing Singaporean and foreign businesses to apply for grant funding. Per its statement, the funding will be used to support “actual trial and commercialization.”
According to Ravi Menon, Managing Director of MAS, Singapore has not been lax in fostering innovation and competing with other tech hubs. Menon claimed in an official statement:
“Since 2015, the Financial Sector Development Fund (FSDF) has awarded $340 million as part of the FSTI program to drive the adoption of technology and innovation in the financial sector.… With FSTI 3.0, we look forward to continued collaboration with the industry to advance purposeful financial innovation.”
The Announcement Includes AI and RegTech Boost
Support for corporate venture capital (CVC) entities is also included in the package. The Enhanced Center of Excellence track, formerly known as the Innovation Labs track, will now provide grant funding to larger firms in order for them to invest in future start-ups.
The funding will take care of up to 50% of qualifying expenses, with a maximum cap of S$2 million per project. However, this will include labor and rental costs.
The FTSI will also assist with Artificial Intelligence and Data Analytics (AIDA), Regulation Technology (RegTech), and Environmental, Social, and Governance (ESG) Fintech solutions.
This third iteration of the FTSI was first announced on November 2, 2022, at the Singapore FinTech Festival by Lawrence Wong, deputy prime minister, minister for finance, and deputy chairman of the Monetary Authority of Singapore.
The city-state has long been at the forefront of technological advancement. According to the World Intellectual Property Organization’s (WIPO) latest Global Innovation Index (GII) 2022, it is the seventh most innovative country globally. Singapore rose one spot in the rankings over the previous year.
While Singapore is a tech-friendly society in general, it was only ranked 63rd on Chainalysis’s latest Crypto Adoption Index, despite the fact that the jurisdiction is still making legal and regulatory strides in this area.
A Singaporean judge ruled on July 26 that crypto assets were property that could be “held in trust.” The landmark court decision establishes a precedent for the treatment of cryptocurrencies. Courts can now include crypto assets as subject matter in enforcement orders.
