JPMorgan pilot tests Asset Tokenization With Singapore & More News Here

JPMorgan pilot tests Asset Tokenization With Singapore

JPMorgan has joined palms with DBS Bank and Marketnode to launch a pilot venture on digital asset tokenisation in Singapore

By Shashank Bhardwaj

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Image: Shutterstock

JPMorgan Chase & Co. is piloting the tokenisation of DeFi on the blockchain as a part of the Singapore Central Bank’s venture to research the financial potential and value-adding use circumstances of crypto belongings. 

The Singapore Monetary Authority introduced the launch of an industry-wide collaborative pilot venture on Tuesday led by numerous ‘belief anchors’. These belief anchors embrace Singaporean multinational DBS Bank, the American funding financial institution JPMorgan Chase & Co., and SGX-Temasek digital asset enterprise Marketnode. 

This venture intends to conduct secured borrowing and lending on a public blockchain-based community by means of the usage of sensible contracts. The initiative is known as ‘Project Guardian’.

The Coordinating Minister for Economic Policies Heng Swee Keat and the Deputy Prime Minister of Singapore introduced the venture on the Asia Tech x Singapore Summit.

The Group Head of Planning and Strategy at DBS, Han Kwee Juan, stated, “Developed on [the] public blockchain, this pilot is also pivotal as it furthers efforts to innovate, advance and scale institutional financial applications on blockchain and their interoperability across different blockchain networks with the long-established rails of the existing financial markets.” 

The Monetary Authority of Singapore (MAS) was among the many first regulators to research the usage of blockchain know-how. Singapore established a crypto licensing regime a number of years in the past. However, crypto gamers have been pissed off by the gradual license granting course of. Further, a crypto promoting ban caught the {industry} off guard. With Project Guardian, Singapore desires to ascertain its picture as a hub for decentralised finance.

Project Guardian goals to develop and pilot use circumstances in areas comparable to open, interoperable networks, belief anchors, and institutional-grade DeFi protocols. The venture’s first pilot will look into potential DeFi functions in wholesale funding markets. It additionally entails the institution of a permissioned liquidity pool of tokenised bonds and deposits. The venture will additional concentrate on decreasing market manipulation by incorporating regulatory safeguards into DeFi protocols.

Tokenisation permits a crypto token to characterize a standard asset comparable to inventory. The MAS pilot seems to work in the identical method because the DeFi protocol Aave. Aave additionally has permissioned liquidity swimming pools and is aimed on the wholesale funding market.

“Through practical experimentation with the financial industry and the broader ecosystem, we seek to sharpen our understanding in this rapidly transforming digital assets ecosystem,” quoted the Chief FinTech Officer of MAS, Sopnendu Mohanty. 

Mohanty added, “The learnings from Project Guardian will serve to inform policy markets on the regulatory guardrails that are needed to harness the benefits of DeFi while mitigating its risks.”

It is noteworthy that DBS Bank, JPMorgan, and Temasek (Marketnode co-owner) are already concerned in a separate trial of ‘Partior’. It is a Singaporean blockchain-based interbank cost system. The platform goals to extend the velocity and decrease the price of cross-border funds, that are anticipated to achieve $156 trillion by the tip of 2022.

Shashank is the founding father of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash 

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