JPMorgan First DeFi Transaction

JPMorgan First DeFi Transaction

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Mike
Mike

An editor at Coincrop


03 Nov 2022 | 2 min read
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PMorgan has completed the first live trade using public blockchain in collaboration with the Monetary Authority of Singapore (MAS) for Project Guardian.

JPMorgan used Ethereum layer2 network Polygon for its transaction because of the low fees, and took advantage of Aave Protocol's permissioned pool.

The banking giant completed the transaction using decentralized finance (DeFi), tokenized deposits, and verifiable credentials.

Project Guardian is a MAS initiative that focuses on asset tokenization and DeFi. It includes financial institutions such as JP Morgan, Marketnode, and DBS Bank Ltd.

The pilot program was conducted by DBS Bank, JPMorgan, and SBI Digital Asset Holdings. They traded foreign exchange and government bonds against liquidity pools that contained tokenized versions of Singapore, Japanese government bonds, Japanese Yen, and Singapore dollars.

Does JPMorgan's move signals mainstream adoption of DeFi protocols and could open up opportunities for more institutional investors to get involved in the space.

 


Mike

Mike

An editor at Coincrop
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Mike is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely putting his latest car project back together.


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