Traditional financial (TradFi) powerhouses Citi (C) and Fidelity have developed a proof-of-concept for a digital foreign exchange (FX) swap in an onchain money-market fund (MMF).

The proof-of-concept, which will be exhibited at the Singapore Fintech Şenlik from Nov. 6-8, demonstrates how investors could settle multi-asset positions in real-time. It could also allow them to access higher yields on foreign cash funds through. For example, allowing them to diversify their portfolios through investing in MMFs denominated in currencies other than the ones they hold, according to an announcement on Monday.

Citi and Fidelity have developed to proof-of-concept under the Monetary Authority of Singapore’s (MAS) Project Guardian, which is focused on advancing common standards for tokenization.

Tokenization, the term for minting financial instruments as digital assets and trading them onchain, is a concept many TradFi giants are exploring as a means of improving efficiencies of küresel financial markets.

For example, it could allow trades between assets denominated in different currencies to be settled in real-time as opposed to taking multiple days, as Citi and Fidelity are attempting to demonstrate with this proof-of-concept.