JP Morgan has executed its first live trade on a public blockchain as part of Monetary Authority of Singapore (MAS) Project Guardian.
The banking giant used DeFi, tokenized deposits, and verifiable credentials to complete transactions.
Project Guardian is an initiative of MAS with financial institutions such as JP Morgan, Marketnode and DBS Bank Ltd. Its focus is asset tokenization and his DeFi use case.
of pilot In this program, DBS Bank, JP Morgan and SBI Digital Asset Holdings conducted foreign exchange and government bond trading against a liquidity pool containing tokenized Singapore, Japanese Government Bonds, Japanese Yen and Singapore Dollars .
Participants completed cross-currency transactions involving tokenized Japanese Yen and Singapore Dollar deposits. We also conducted mock trading of tokenized government bonds.
JP Morgan completes its first DeFi transaction.
Ty Lobban, head of blockchain launch and Onyx Digital Assets at JP Morgan, explained in a Twitter thread on Nov. 2 how the bank completed the transaction.
world! JP Morgan has executed the first *live* trade on a public blockchain using DeFi, tokenized deposits and verifiable credentials. @MAS_sg Project Guardian 🙌🚀🔥https://t.co/XI212SG4zg Many world bests are here. Since this is public ⛓ we are transparent about what we did 🧵:
— Ty Lobban (@TyLobban) November 2, 2022
According to Lobban, the bank carried out transactions on Polygon (MATIC) on the Ethereum (ETH) Layer 2 network. This is due to its low transaction fees and leveraging the permission pool concept of the Aave (AAVE) protocol.
He continued that JP Morgan has issued a tokenized Singapore dollar (TSD). deposit for Japanese Yen. TSD is a native deposit token with stable on-chain value without the scalability issues that plague stablecoins.
The bank uses W3C Verifiable Credentials (VC) to establish compliant access to Aave, On-chain verification of VC.
Rovan said on-chain verification “brings configurability to identification” and can be used across various DeFi protocols. He added:
“[JP Morgan]cannot enable money laundering and must enforce KYC. It was important to do
Finally, the bank built an institutional wallet to prevent traders from accessing company funds. At the same time, trading can only be done using his approved DeFi protocol, and all trading institutions have VCs.
