A new research report from the New York Federal Reserve and the Bank for International Settlements (BIS), titled ‘Project Pine,’ investigates the use of smart contracts in tokenized financial markets for implementing monetary policy. The study reveals a collaborative effort between the New York Fed Innovation Center and BIS Innovation Hub to develop a prototype toolkit using smart contracts for central bank monetary policy execution. This toolkit enables operations like interest rate payments, asset purchases, and collateral management, which has been tested through ten historical simulations including market turmoil and liquidity constraints. The report highlights how smart contracts can offer rapid deployment and flexibility within future tokenized financial systems for central bank policy execution. However, it also acknowledges the need to address issues such as interoperability, data standards, and operational risks.