A joint initiative by Elliptic, the Digital Asset Association (DAA), the Responsible Fintech Institute (RFI), and Baker McKenzie Wong & Leow aims to establish an industry-standard risk-management framework, supporting safe innovation and Group 1 crypto asset treatment.

SINGAPORE, Aug. 13, 2026 — The Project Pigeon consortium, jointly convened by Elliptic, the DAA, the RFI, and Baker McKenzie, has announced the formation of "Project Pigeon: A Working Group for Permissionless Blockchain Governance in APAC." The regional initiative is focused on advancing safe, compliant innovation on public blockchain networks and equipping financial institutions with the frameworks needed to operate securely amid rapidly evolving regulatory landscapes.

The initiative draws its name from carrier pigeons, symbolizing the consortium's goal of building trusted governance frameworks that enable secure communication and value transfer across open, decentralized blockchain networks.

The working group's launch follows the Monetary Authority of Singapore's (MAS) April 2026 Consultation Paper on the prudential treatment of crypto assets on permissionless blockchains. That consultation addressed how banks should assess capital, operational, and legal risks when transacting on public networks — a category that, unlike permissioned or private chains operated by known entities, allows open, anonymous participation without a central operator controlling validators or governance. The outcome has significant prudential implications: under the Basel Committee on Banking Supervision's crypto asset framework, assets that fail to meet stringent risk and infrastructure conditions are classified into less favorable categories subject to punitive capital charges, making the distinction between compliant and non-compliant permissionless infrastructure material for regulated institutions. A central objective of Project Pigeon is to assist banks and financial institutions in assessing and addressing the regulatory considerations raised in that consultation through a framework structured around four fundamental risk pillars, each led by a designated consortium co-convenor:

• Governance Risk (led by RFI): Addressing node concentration, maintaining governance transparency, and ensuring strict accountability within decentralized ecosystems.

• Technology Risk (led by DAA): Mitigating threats such as 51% attacks, protocol vulnerabilities, smart contract exploits, and broader infrastructure risks.

• Settlement Finality Risk (led by Baker McKenzie): Evaluating consensus mechanisms, reconciling probabilistic versus deterministic finality, and establishing the legal certainty of settlement.

• AML/CFT Risk (led by Elliptic): Tackling challenges related to pseudonymity, implementing effective sanctions screening, leveraging advanced on-chain analytics, ensuring Travel Rule compliance, and managing the linkage to prudential risk.

The working group unites a diverse coalition of banks, crypto-native firms, digital asset exchanges, and legacy financial institutions operating across the Asia-Pacific (APAC) region. APAC has become a focal point for digital asset regulation, with MAS, the Hong Kong Securities and Futures Commission, and Japan's Financial Services Agency each developing frameworks that balance institutional crypto adoption with prudential safeguards. Reflecting the systemic importance of the initiative, Project Pigeon has established observer and consulting roles for leading regulatory bodies.

Baker McKenzie serves as the consortium's official secretariat, providing editorial oversight, supporting engagement with regulators, and managing governance processes. The structured approach includes bi-weekly plenary sessions, focused meetings for the four workstream sub-groups, quarterly regulatory checkpoints, and monthly reviews conducted by a central Steering Committee comprising DAA, RFI, Elliptic, and Baker McKenzie.

The consortium's efforts will culminate in an authoritative industry guide titled "Pigeon Permissionless Blockchains," which will set out a practical, end-to-end risk management lifecycle framework with executable guidelines for risk and compliance managers, referencing existing industry standards and regulatory guidance. The publication will feature a detailed risk taxonomy, catalogues of risk events, preventive and detective controls, governance mechanisms, methodologies for controls testing, and protocols for issues management and reporting. Alongside the guide, the consortium will release a dedicated regulatory briefing paper tailored for supervisors across the APAC region. The target publication date for the industry guide is Q1 2027 — a timeline that positions the framework to inform compliance programs as regulators across the region move from consultation to implementation of finalized rules.

The consortium's workstream leads offered the following remarks:

"Robust governance is the missing link between decentralized ideals and institutional reality. Our focus is on creating transparent accountability mechanisms that satisfy regulatory expectations without stifling innovation."

— Chia Hock Lai, Chairman, Responsible Fintech Institute (RFI)

"The underlying technology of public chains is immensely powerful, yet undeniably complex. We are dedicated to producing actionable controls that shield financial institutions from protocol vulnerabilities and adversarial network actions."

— Jag Foo, ExCo Member & Chair of Digital Assets Security Subcommittee, Digital Assets Association (DAA)

"Legal certainty is fundamental to the functioning of financial markets. As the use of permissionless blockchain networks continues to evolve, there is a growing need for greater clarity around the legal and governance considerations among financial institutions. Project Pigeon provides a platform to examine these issues and contribute to the development of practical approaches for the industry."

— Stephanie Magnus, Principal, Financial Services Regulatory and FinTech, Baker McKenzie Wong & Leow

"As the adoption of permissionless chains accelerates, so too must our approach to financial crime compliance. By embedding advanced on-chain analytics and Travel Rule compliance directly into the operational lifecycle, we are ensuring that transparency and security go hand-in-hand."

— June Lau, APAC Head of Policy and Regulatory Affairs, Elliptic

Interested financial institutions, technology providers, and regulatory bodies are invited to participate in the working groups or contribute to the public consultation phase.

About Project Pigeon

Project Pigeon is a regional working group and industry consortium focused on establishing governance and risk management standards for the use of permissionless blockchains by financial institutions in the APAC region. Convened by Elliptic, DAA, RFI, and Baker McKenzie, the initiative bridges the gap between decentralised technology and institutional regulatory compliance.

About Elliptic

Elliptic is a global leader in cryptoasset risk management for crypto businesses, governments, and financial institutions worldwide. Recognized as a World Economic Forum Technology Pioneer, Elliptic protects the cryptoasset economy from financial crime through advanced on-chain analytics and AML/CFT compliance solutions.

About the Digital Asset Association (DAA)

The Digital Asset Association (DAA) is an industry body dedicated to fostering a responsible, secure, and innovative digital asset ecosystem. The DAA collaborates with policymakers, technology developers, and financial institutions to promote best practices and mitigate technology risks in blockchain infrastructure.

About the Responsible Fintech Institute (RFI)

The Responsible Fintech Institute (RFI) is a global nonprofit organization based in Singapore. Its goal is to create a safe, trustworthy, and reliable future for digital finance by building the digital utilities to support responsible innovation. The organization brings together public and private sector stakeholders to help build the necessary rules and technology for new digital financial tools.

About Baker McKenzie Wong & Leow

Baker McKenzie provides comprehensive legal advice across diverse cultures and jurisdictions, combining local expertise with international reach. The firm's global Fintech practice advises financial institutions, fintech innovators, digital asset businesses, and technology companies on complex legal, regulatory, and governance issues arising from emerging technologies and digital financial services. Its work spans digital assets, digital payments, tokenization, market infrastructure, and other technology-enabled financial services. Baker McKenzie Wong & Leow is the Singapore member firm of Baker McKenzie.

Source: Chainwire