JPMorgan, DBS Bank, SBI Complete Live Defi Trades on Public Blockchain
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JPMorgan, DBS Bank, and SBI Digital Asset Holdings have completed their first lives trades on a public blockchain using decentralized finance (defi), tokenized deposits, and verifiable credentials under the supervision of the Monetary Authority of Singapore (MAS). Singaporeâs central bank is planning two more pilots that involve Standard Chartered Bank, HSBC, and UOB.
JPMorgan, DBS Bank, SBI, Standard Chartered Bank, HSBC, UOB Participate in MAS Digital Asset Pilots
The Monetary Authority of Singapore (MAS), Singaporeâs central bank, announced Wednesday that âthe first industry pilot under the MASâ Project Guardian that explores potential decentralized finance (defi) applications in wholesale funding markets has completed its first live trades.â
The announcement details that for this pilot:
DBS Bank, JP Morgan, and SBI Digital Asset Holdings conducted foreign exchange and government bond transactions against liquidity pools comprising of tokenized Singapore Government Securities Bonds, Japanese Government Bonds, Japanese Yen (JPY), and Singapore Dollar (SGD).
The Singaporean central bankâs Project Guardian was announced in May. The regulator explained that since then, it âhas engaged the financial industry to identify key areas for collaboration.â
The announcement further reveals:
MAS is launching two new industry pilots.
The first focuses on trade finance. âStandard Chartered Bank is leading an initiative to explore the issuance of tokens linked to trade finance assets,â the MAS outlined. âThe project aims to digitize the trade distribution market, by transforming trade assets into transferable instruments that are more transparent and accessible to investors.â
The second pilot focuses on wealth management. âHSBC and UOB are working with Marketnode to enable native digital issuance of wealth management products, enhancing issuance efficiency and accessibility for investors,â the central bank described.
MAS Chief Fintech Officer Sopnendu Mohanty commented: âThe live pilots led by industry participants demonstrate that with the appropriate guardrails in place, digital assets and decentralized finance have the potential to transform capital markets. This is a big step towards enabling more efficient and integrated global financial networks.â The official added:
Project Guardian has deepened MASâ understanding of the digital asset ecosystem and has contributed to the development of Singaporeâs digital asset strategy.
Following the MAS announcement, Tyrone Lobban, JPMorganâs head of blockchain launch and Onyx Digital Assets, explained on Linkedin that the global investment bank has âexecuted its 1st LIVE trade on public blockchain using defi, tokenized deposits & verifiable credentials as part of Monetary Authority of Singapore (MAS)âs Project Guardian.â
He described: âThis is a massive step forward towards a future where finance can take place in a compliant manner on public blockchain using public defi protocols. The beginnings of Institutional defi are here.â Lobban added:
This is the worldâs first bank-issued tokenized deposit and the first trade by regulated Financial Institutions using W3C verifiable credentials for compliant access to defi on public blockchain.
âTo achieve this we used a modified version of Aave on Polygon Technology blockchain to conduct a trade of tokenized SGD for JPY with SBI Holdings LLC. And we built a digital identity solution that combines identity proofs with trade instructions for âon chainâ verification, opening up a world of composable, pluggable identity,â the JPMorgan executive concluded.
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