The Monetary Authority of Singapore (MAS) recently announced that it would commit as much as S$150 million ($112 million) to accelerate and strengthen innovation in the country. The funds would support projects that utilize emerging technologies like web3, in line with the MAS’ commitment to promote a vibrant technology ecosystem.
According to a press release from the Monetary Authority of Singapore, the central bank would disburse the funds over a three year period under the Financial Sector Technology and Innovation Scheme (FSTI 3.0). The FSTI was initially announced last year by Lawrence Wong, the Deputy Prime Minister and Minister for Finance, and Chairman of MAS.
Speaking on the role of FSTIs in the country’s fintech sector, MAS’ Managing Director Ravi Menon stated:
FSTI 1.0 and 2.0 helped strengthen the digital capabilities of financial institutions which served them and their customers through the COVID pandemic. With FSTI 3.0, we look forward to continued collaboration with the industry to advance purposeful financial innovation.
FSTI 3.0 would focus on three primary tracks namely the Innovation Acceleration track, the Enhanced Centre of Excellence track, and the Environmental, Social, and Governance (ESG) FinTech track. As part of the Innovation Acceleration track, the central bank would facilitate grant funding to promote fintech solutions based on web3 technology.
The Enhanced Centre of Excellence track would grant as much as S$2 million to corporate venture capital entities. As per the central bank, these entities would play a key role in identifying and fostering the next generation of start-ups and provide mentorship in order to help them scale up. The Environmental, Social, and Governance (ESG) FinTech track would grant up to S$500,000 to support the development of projects that address ESG-related needs of the country’s financial sector, including data, reporting, and analytics.
