- JP Morgan giant using Polygon and modified Aave for live trade.
- SBI Digital Assets tokenized Japanese yen (JPY) assets.
JP Morgan, the global leader in financial services, completed its first live cross-border transaction on a public blockchain using decentralized finance (DeFi). The trade was executed on the Ethereum layer-2 network Polygon and using a modified version of the AAVE protocol.
Through this trade, JP Morgan marks a significant advancement in the company’s integration with the infrastructure that supports the cryptocurrency industry. Also, the trade was made possible by Project Guardian, a pilot program run by the Monetary Authority of Singapore (MAS) to research possible DeFi uses in wholesale funding markets.
The first public launch of Project Guardian occurred in May 2022, around a month after JP Morgan and DBS announced their agreement to create a new blockchain interbank platform to support central bank digital currencies (CBDCs).
JP Morgan Trade Partners
According to the report, the first round of trials was done by Temasek, Singapore’s DBS Bank, Japan’s SBI Digital, Singapore Exchange’s Marketnode, and JPMorgan’s Onyx, the bank’s blockchain unit for wholesale payments.
In addition, Onyx effectively tokenized Singapore dollar (SGD) deposits for Foreign exchange (FX) transactions. And SBI Digital Assets tokenized Japanese yen (JPY) assets. The pilots also include DBS Bank Ltd, Standard Chartered Plc, and HSBC Holdings Plc.
Furthermore, JPMorgan also developed on-chain verification of verifiable credentials (VC) to offer compliant access for Aave and other DeFi protocols. The purpose was to do away with the necessity for know-your-customer (KYC) checks on the DeFi front end. Moreover, in April 2021, the European Investment Bank (EIB) issued digital bonds on a blockchain network.
