The New York Fed and the bank for international settlements released a research report testing tokenization monetary policy tools.

On May 16, the Federal Reserve Bank of New York and the Bank for International Settlements (BIS) jointly released a research report "Project Pine", testing the feasibility of implementing monetary policy using smart contracts in the tokenized financial market. The Project Pine research report shows that the New York Fed's Innovation Center and the BIS Innovation Hub jointly developed a prototype toolkit for central bank monetary policy implementation based on smart contracts. This toolkit supports operations such as interest rate payments, asset purchases, and collateral management, and has been tested in 10 historical simulation scenarios, including market turmoil and liquidity tightening. The report points out that smart contracts have the ability to quickly deploy and adjust monetary policy tools, providing flexibility and efficiency for future central bank policy execution in the tokenized financial system, but also emphasizes the need to follow interoperability, data standards, and potential operational risks.