JPMorgan and two more Banking Titans conduct the first blockchain-based trade in new DeFi pilot
Three world leaders in the banking industry are participating in Project Guardian, an initiative by the Monetary Authority of Singapore (MAS) that aims to pilot digital asset and decentralized finance (DeFi) use cases.
JPMorgan, DBS Bank and SBI Digital Asset Holdings have just completed the first live trades for the program’s first industry pilot, trading tokenized government bonds and executing foreign exchange transactions using tokenized Japanese yen (JPY) and Singapore dollars (SGD).
According to MAS, the pilot shows that tokenized assets can be traded, cleared and settled instantly, which can reduce the costs of cross-currency transactions.
Says Fintech manager at MAS, Sopnendu Mohanty,
“The live pilots led by industry participants demonstrate that with the right guardrails in place, digital assets and decentralized finance have the potential to transform capital markets. This is a major step towards enabling more efficient and integrated global financial networks.”
Umar Farooq, CEO of JPMorgan’s blockchain unit Onyx, says CNBC that the blockchain-based transactions were a first for the banking industry and called for precautions against potential security issues.
“It was the first time we had tokenized deposits. I actually think it’s the first time any bank in the world has tokenized wallets on a public blockchain.
Using public blockchain, we had to spend a lot of time thinking through identity. We did a lot of audits of smart contracts because again – they were publicly visible. And finally, it used a protocol to make it all happen. There is a lot to manage the risk. All of these were firsts for us.”
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Featured image: Shutterstock/PopTika
